Ancestry.com Gets Rocked: Is the Sell-Off Warranted?

The following video is part of our "Motley Fool Conversations" series, in which senior technology analyst Eric Bleeker and chief technology officer Jeremy Phillips discuss topics across the investing world.

As we come to the close of earnings season, tech companies are getting sold off left and right. Cisco just warned of a slowdown ahead, leading to many IT-spending-reliant companies being sold off. But the pain had started before Cisco's warning. Despite earnings that blew away expectations, Apple has since traded back down to levels seen before its earnings. One notable company has managed to hold on to gains even as clouds emerge over the tech sector: Ancestry.com delivered solid earnings and recently announced a new program that could change the business's trajectory. However, news of cancellation of a TV show Ancestry relied upon has sent its shares crashing below its pre-earnings price. Jeremy and Eric take a look at whether Ancestry and other tech companies that have been rocked despite great earnings are a buy.

In many ways, Apple and Ancestry revolutionized their fields. Ancestry has become one of the largest subscription sites on the Internet and has made genealogy a hot investment space. Yet the revolution Apple is riding dwarfs anything the technology world has ever seen. To better prepare investors for this new revolution, The Motley Fool has just released a free report on mobile called "The Next Trillion-Dollar Revolution" that details a hidden component play inside mobile phones that also is a leader in the exploding Chinese market. Inside the report, we not only describe why the mobile revolution will dwarf any other technology revolution seen before it, but we also name the company at the forefront of the trend. Hundreds of thousands have requested access to previous reports, and you can access this new report today by clicking here -- it's free.

Eric Bleeker owns shares of Cisco Systems and IPG Photonics. Jeremy Phillips has no positions in the stocks mentioned above. The Motley Fool owns shares of Apple, Ancestry.com, and IPG Photonics. Motley Fool newsletter services recommend Ancestry.com, Apple, and IPG Photonics. 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.


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