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 intellectual property owner Acacia Research (NASDAQ: ACTG) fell 26% today after the company released earnings.

So what: Revenue fell 22% to $76.9 million and net income dropped 90% to $5.1 million, or $0.11 per share. On an adjusted basis, earnings per share were $0.47, which was actually $0.05 ahead of estimates.  

Now what: It's inherently difficult for to predict quarterly results, but the trends are what's important here. On one-year trailing basis, revenue fell 9%, which isn't a strong trend for the company. This is just way too volatile a business for me to buy in right now, and I don't see the trends moving in the right direction, particularly on the bottom line.

Interested in more info on Acacia Research? Add it to your watchlist by clicking here.

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Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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.