This Week's 5 Dumbest Stock Moveshttp://www.fool.com/investing/general/2012/11/02/this-weeks-5-dumbest-stock-moves-5.aspx Rick Aristotle Munarriz
November 2, 2012
Stupidity is contagious. It gets us all from time to time. Even respectable companies can catch it. As I do every week, let's take a look at five dumb financial events this week that may make your head spin.
1. Bad to the Baidu
Revenue climbed 50% to $994.6 million in the latest quarter for China's leading search engine. That may not sound too bad, but it's actually the slowest year-over-year growth that Baidu has posted in years. Making matters worse, analysts were betting on a 53% surge in revenue.
It gets worse. Baidu now sees fourth-quarter revenue growing at a 38% to 42% clip relative to last year's fourth quarter. Not only would this be a sequential decline, but Wall Street was holding out for top-line growth decelerating for a 46% advance.
Baidu didn't do itself any favors in the call by pointing to the big but as-yet-unrealized potential of mobile, failing to single out the growing popularity in China of Qihoo 360's (NYSE: QIHU ) new search engine, and suggesting that margin-gnawing investments to beef up mobile and cloud services are on the way.
2. Under the Micro scope
MicroStrategy (Nasdaq: MSTR ) posted problematic quarterly results on Monday.
The provider of business intelligence software solutions posted a profit of $0.43 a share on $143.2 million in revenue, essentially flat from where it was a year earlier. The rub is that analysts were banking on net income of $0.84 a share on a little more than $150 million in revenue.
Bulls will argue that the miss isn't MicroStrategy's fault. It doesn't provide guidance. It didn't even schedule a conference call to discuss the results. Maybe it's just me, but shouldn't a company whose product turns a client's operational data into actionable information be a little more forthcoming with information of its own?
3. Transitions in motion
At that point, you really don't need to keep reading. The term "transition phase" is what somebody might say just as they're about to break up with you, and in this case it's pretty much the same thing.
OCZ -- a company that is still weeks behind in filing its latest quarterly financials -- is a mess right now. The maker of solid-state drives will be discontinuing many of its products and slashing its global workforce by 28%.
Don't take it personally, OCZ bulls. It's not you. It's OCZ.
4. Vringo was the funny-looking Beatle
Instead of potentially claiming damages