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.
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