10-Bagger Week in Review
Albert Einstein said he wanted to "know the mind of God; everything else is just details."
On a more mundane level, Apple (NAS: AAPL) reported earnings this week, and everything else was just details. That didn't stop us, however, from taking a closer look at the other big stories of the week and considering how they might affect our 10-Bagger portfolio. Below you'll find some of those stories, along with our takeaways:
1.Apple reports blowout earnings
Apple just crushed it in the second quarter -- so much so that Motley Fool CEO Tom Gardner tweeted that it "may have delivered the greatest quarter in American corporate history." Net income rose 94% to $11.6 billion as the company sold 35.06 million iPhones. (That's more iPhones than there are people in Canada.)
Takeaway: As more and more smartphone users continue to clog the data pipes, one company stands ready to help networks move data more effectively: Infinera (NAS: INFN) . This company, which developed the photonic integrated circuit, also happens to be one of our most promising recommendations. Thanks, Apple!
2. Is Netflix doomed?
Netflix (NAS: NFLX) met or surpassed analyst targets when it reported earnings this week, but its share price was taken to the woodshed nonetheless. Ultimately, it seems, investors aren't encouraged by its long-term prospects. One commentator summed up that sentiment perfectly by asking, "Is Netflix Doomed?"
Takeaway: Netflix's DVD business was once the poster child for a disruptive technology -- and exactly what we look for at 10-Bagger Stocks. Can Netflix replicate its previous success with DVDs in the new area of streaming? We're on the fence about that at the moment.
3. Zipcar loses its zip.
10-bagger recommendationZipcar (NAS: ZIP) announced reasonably strong earnings this week, but its stock price got hammered anyway. While the company was able to deliver 20% year-over-year growth in revenue to $59 million, investors were looking for considerably more growth than that. Shares fell as much as 13% in intraday trading after the earnings release.
Takeaway: There's a difference between growing your business and growing your business profitably. We like the trajectory of Zipcar's profits, even if revenue growth decelerates.
See you next week, Fools! Don't forget to follow us @10-Bagger Stocks on Twitter for all of the latest information relating to our portfolio. And don't forget to add each of the companies mentioned above to your very own My Watchlist so you can track them and monitor their progress.
At the time this
article was published John owns shares of Apple. David owns shares of Apple and Infinera.The Motley Fool owns shares of Zipcar and Infinera. The Fool owns shares of Apple.Motley Fool newsletter serviceshave recommended buying shares of Infinera, Netflix, Zipcar, and Apple, as well as creating a bull call spread position in Apple. The Motley Fool has adisclosure policy.
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