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: Candy Crush got smashed today when its maker, King Digital Entertainment PLC (NYSE:KING) fell 13% after reporting earnings.
So what: Revenue in the first quarter nearly tripled, to $606.7 million, but was only slightly higher than $602 million last quarter, showing signs that Candy Crush's popularity is fading. Profit was up from $52.7 million a year ago, to $127.2 million, but was down from $159 million a quarter ago.
Now what: When you come public with a single product that drives your results, the pressure is on to come up with your next product, especially in the fast-moving app business. King Digital and its investors are finding that out quickly, and I still wouldn't be buying the stock today. App and game success is fleeting, and just because you caught lightning in a bottle once doesn't mean you can do it again.
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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.