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 cloud-based communications company magicJack VocalTec Ltd. (NASDAQ:CALL) sank 12% today after its quarterly results disappointed Wall Street.

So what: The stock has pulled back sharply in recent months on concerns over slowing growth, and today's Q1 results -- EPS of $0.53 topped estimates but revenue dropped 4.3% -- only reinforce that worrisome trend. In fact, magicJack's gross margin plunged 670 basis points over the year-ago period to 63.1%, suggesting that its competitive position continues to rapidly weaken.

Now what: Management reiterated its full-year 2014 revenue of between $158 million to $163 million, versus the consensus of $157.5 million. "Our performance in the first quarter provides us with a stable position from which to manage our on-going transformation of magicJack," said President and CEO Gerald Vento. "While we recognize that Q2 is a transition quarter, we are excited about the opportunity to renew growth in the second half of 2014." More importantly, with magicJack shares now off more 30% from their 52-week highs and trading at single-digit forward P/E, the downside might be limited enough to bet on it.

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Brian Pacampara has no position in any stocks mentioned, and neither does The Motley Fool. 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.