August 18, 2011
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 TIBCO Software (Nasdaq: TIBX ) fell as much as 14.5% before closing off 13%. The stock fell in sync with NetApp (Nasdaq: NTAP ) and a host of other digital data enablers on concerns that tech spending won’t support growth expectations for the sector.
So what: Similarly styled losers included Informatica (Nasdaq: INFA ) and Oracle (Nasdaq: ORCL ) . Yet the broader selloff doesn't change the truth that all three businesses are doing well. TIBCO, in particular, just yesterday announced a partnership with Logica in the U.K. for a new financial messaging hub capable of handling up to 5 million messages across distinct systems.
Now what: To be fair, TIBCO does trade for a premium to the long-term earnings growth analysts expect. Bad news tends to tank pricey stocks, even when the news isn't directly related to the underlying business. That seems to be what we have here. Where do you stand on this stock? Would you use the selloff as a buying opportunity? Weigh in using the comments box below.
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