ValueClick Shares Plunged: What You Need to Know (VCLK)

ValueClick 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: Shares of ValueClick (Nasdaq: VCLK ) took a 13% nosedive after the company reported earnings, but then recovered slightly.

So what: Revenue jumped 26% to $125.1 million, topping estimates of $121.2 million from Wall Street. Earnings per share were $0.21, which also topped estimates of $0.19. But an acquisition is what investors are fixated on today.

Now what: A solid earnings beat and then the stock sinks -- that doesn’t make any sense until you see that ValueClick also announced it would buy Dotomi for cash and stock. The deal will be paid 55% in cash and 45% in stock, and investors aren’t terribly excited about it. ValueClick’s forward P/E ratio of 16 is a pretty good value considering the growth and earnings this quarter, so I think this move is well overdue.

Interested in more info on ValueClick? Add it to your watchlist.

The Steve Jobs Betrayal
You may already know that in the final year of his life, Jobs revealed a stunning betrayal — and told his biographer, "I will spend my last dying breath... and every penny of Apple's $40 billion in the bank to right this wrong." What was it that made Jobs so irate — and why could it make a few in-the-know investors some major profits over the coming months and years?

Enter your email address below to find out what made Jobs so enraged!

Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.

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