GSI Commerce Shares Plunged: What You Need to Know

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: In intraday trading today, shares of e-commerce enabler GSI Commerce (Nasdaq: GSIC  ) fell as low as 11% below yesterday's close.

So what: GSI Commerce's third-quarter sales were $284 million and the company reported a net loss of $0.28 per share. Both figures were weaker than the average analyst forecast, though they beat management's own guidance for the quarter.

Now what: GSI Commerce is challenging mighty Amazon.com (Nasdaq: AMZN  ) with a loyalty program much like Amazon Prime just in time for the holidays, which shows a healthy helping of chutzpah. E-commerce services is a tough industry in which to make a living, but GSI Commerce is fighting the good fight. This shortfall was at least partly the result of analysts raising their targets recently, seemingly jumping to the wrong conclusions.

Interested in more info on GSI Commerce? Add it to your watchlist by clicking here.

Fool contributor Anders Bylund holds no position in any of the companies discussed here. Amazon.com is a Motley Fool Stock Advisor pick. 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 is investors writing for investors.


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