Why InvenSense, Twilio, and Navistar International Jumped Today
The stock market stalled out on Wednesday, with many investors focusing on the failure of the Dow Jones Industrials to cross the much-watched 20,000 mark. Losses among major market benchmarks were quite modest at a quarter percent or less, and the level of intraday volatility was minimal, pointing to the tug of war that traders seem to be engaging in as the Dow hovers near the historical milestone. Yet even though markets were ambivalent, many individual stocks posted gains, and InvenSense (NYSE: INVN), Twilio (NYSE: TWLO), and Navistar International (NYSE: NAV) were among the best performers on the day. Below, we'll look more closely at these stocks to tell you why they did so well.
Image source: InvenSense.
InvenSense gets the buyout investors were looking for
InvenSense finished up 18% after Japanese tech giant TDK (NASDAQOTH: TTDKY) followed through with an expected buyout offer for the sensor-making specialist. The terms of the $1.3 billion deal will involve TDK paying $13 per share in cash for InvenSense stock. That's $1 per share higher than what rumors earlier this month had suggested might be likely, but TDK clearly believes that the purchase is a good solution to help it build up its exposure to sensor applications in the automotive, Internet of Things, and virtual reality spaces, as well as in the information and communications technology arena generally. The parties expect the deal to close in the third calendar quarter of 2017, and InvenSense CEO Behrooz Abdi noted that the two companies' "strategic goals are aligned, and we are confident that together with TDK, we will accelerate our roadmap to provide next-generation sensor technologies in key fields for the world's most innovative companies."
Twilio benefits from its Amazon partnership
Twilio climbed 16% in the wake of reports that the cloud-based software company will work more closely with Amazon.com (NASDAQ: AMZN) and its Amazon Web Services unit. A Benzinga report cited sources familiar with the matter that Twilio and Amazon will collaborate in order to come up with a voice message service for clients. The two companies have been close in the past, with Amazon having invested in Twilio and with Twilio using Amazon in connection with its business offerings. Given Amazon's reach and reputation for innovation, Twilio's collaboration could continue to pay dividends both now and in the future.
Navistar keeps climbing after earnings
Finally, Navistar International gained 6%. The truck maker added to its share-price increase from Monday, even though it had reported weak fiscal fourth-quarter results that included a worse loss than expected and a steep 17% drop in revenue. Truck sales were down a fifth from the year-ago period, but investors seemed heartened by cost-cutting measures and its deepening relationship with Volkswagen. Also, recent upticks in expectations for economic activity both in the U.S. and across the globe could have positive impacts on the truck manufacturer. Some will be skeptical of Navistar's rally, which has seen the stock quadruple since early this year, but the company has the potential to thrive if more favorable conditions come soon in its industry.
10 stocks we like better than InvenSense When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and InvenSense wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of Nov. 7, 2016
Dan Caplinger has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Amazon.com. The Motley Fool owns shares of InvenSense. 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.