After some initial indecision following a Federal Reserve statement on monetary policy, investors followed up with more indecision in an afternoon of four changes in direction for the broader equity indexes. At the end of the day, index investors were largely back where they started. However, two stocks bucked the broader market trend to book some big gains today. Let's take a closer look.
Shares of Jabil Circuit, a key supply-chain provider for a variety of tech companies, saw a meaningful move lower in May following negative commentary on enterprise tech spending from networking juggernaut Cisco (NAS: CSCO) last month. But investors received a boost today in response to its fiscal third-quarter earnings report yesterday afternoon. In a sign that expectations may have reached bearish extremes, shares rallied despite results that were largely in line with consensus estimates. Even more confusing, the company's outlook for the following quarter was below current analyst expectations. But it appears that better days could be ahead, as the company's exposure to ailing Research In Motion (NAS: RIMM) falls below 10% of total revenues going forward, and pent-up demand for other customer products drives future growth.
Shares of mobile-advertising provider Millennial Media also got a big boost today in what appears to be nothing more than a relief rally for a stock that has been under considerable pressure since its IPO earlier this year. As the largest agnostic mobile platform in the mobile arena, the company is highly leveraged to mobile ad spending, an area that Facebook (NAS: FB) notably highlighted as a potential headwind for revenue growth in the near term. There's also evidence that mobile advertising isn't driving effective advertiser return on investment, a trend that needs to reverse for adoption to improve, and for Millennial to prosper longer-term.
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The article 2 Tech Stocks Ignoring the Market Indecision originally appeared on Fool.com.
Brenton Flynn owns no shares in the companies mentioned. The Motley Fool owns shares of Facebook and Cisco Systems and has adisclosure policy. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.
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