Why Gogo Inc. Shares Popped Today

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of GogoInc. rose more than 10% early Monday, and then settled to close up around 6% after an analyst upgraded the in-flight connectivity specialist.

So what: As reflected in last week's better-than-expected first quarter resultsUBS analyst John Hodulik cite valuation and continued strength in Gogo's business aviation segment. As a result, Hodulik upgraded Gogo shares from "neutral" to "buy," while at the same time curiously reducing his firm's per-share price target on Gogo from $26 to $23. To be sure, to explain the near-term optimistic call, Hodulik notes that "Gogo represents an attractive way to play the growth in wireless data, given its long-term airline contracts and consumers' desire to be constantly connected."

Now what: Even so, he also reduced his 2015 and 2016 earnings estimates given Gogo's anticipated costs to roll out its 2Ku and Ground to Orbit initiatives, as well as possible competitive pressures resulting from the entry of much larger telecom players in the space. As a long-term oriented investor, those concerns are of utmost importance to me, which is why I'm sticking by my previous call to simply keep Gogo on my watch list to see how it plays out over the next few quarters.

Your credit card may soon be completely worthless
After all, there are many other great stocks out there for patient investors. For example, the plastic in your wallet is about to go the way of the typewriter, the VCR, and the 8-track tape player. When it does, a handful of investors could stand to get very rich. You can join them -- but you must act now. An eye-opening new presentation reveals the full story on why your credit card is about to be worthless -- and highlights one little-known company sitting at the epicenter of an earth-shaking movement that could hand early investors the kind of profits we haven't seen since the dot-com days. Click here to watch this stunning video.

The article Why Gogo Inc. Shares Popped Today originally appeared on Fool.com.

Steve Symington and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.

Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story