Twitter Pops Again as Dow Falls
Although we don't believe in timing the market or panicking over daily movements, we do like to keep an eye on market changes -- just in case they're material to our investing thesis.
Stocks eased down today as the Dow Jones Industrial Average and the S&P 500 both fell 0.3%. Investors seemed to continue to fear the Federal Reserve may taper faster than expected as some Fed regional presidents suggested as much.
Among breakout stocks, Twitter jumped another 5.8% today, hitting $52 after revealing new revenue chains. The microblogging service has added private photo messaging to mobile, as well as other tools to help drive ad revenue. While Twitter is fantastically priced at a P/S of 50, it has the barriers to entry, relevancy, and long-term grow prospects that could make it pay off down the road.
Elsewhere, Smith & Wesson spiked 6% after hours today, following its earnings release. The gun maker topped earnings estimates by $0.07, posting an EPS of $0.28, while revenues grew 2.1% to $139.3 million. Third-quarter revenue guidance was better than expected, while EPS was in line. Profits were down from a year ago, though handgun sales rose 27%. Still, costs grew disproportionately to bring down the bottom line.
Finally, lululemon athletica named a new CEO and said founder Chip Wilson was stepping down from the company's own chairmanship. The yoga clothier named Laurent Potdevin to replace Christine Day, who said she would step down back in June, as chief. The changes come following a rough year for Lululemon as it had a product recall and a PR nightmare when Wilson insulted his own customers by blaming defects with the pants on women's bodies. Former TOMS President Potdevin brings to the table "a proven track record of success in building global brands." Lululemon is just embarking on widespread expansion in Asia and Europe so Potdevin's experience figures to be put to work there. Shares of Lululemon finished down 1.3% on the day, and will report earnings Thursday. Analysts expect earnings of $0.41 per share on revenue of $376.2 million.
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The article Twitter Pops Again as Dow Falls originally appeared on Fool.com.Fool contributor Jeremy Bowman has no position in any stocks mentioned. The Motley Fool recommends Lululemon Athletica. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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