What happened

Shares of socializing and dating website The Meet Group (NASDAQ:MEET) closed down 8.2% on Monday, the stock's third declining trading day in a row. There's been no apparent catalyst for the declines, however -- not unless you consider Goldman Sachs' downgrade of Meet competitor Match Group a week ago to be a catalyst.

And that may be good news for investors.

Meet Me sign on a building

Image source: Meet Group.

So what

At least, so thinks Roth Capital, which this morning interrupted Meet Group's regularly scheduled share-price slide to announce that it still thinks this stock is a buy. Doubling down on its existing buy rating, Roth argues that "this material pullback creates a buying opportunity in what is a fundamentally sound story," in a note covered on StreetInsider.com today.

Says the analyst: "[F]undamental checks of App Annie and other services we use to track MeetMe, Lovoo and its portfolio of apps [are] basically unchanged." And with no bad news about Meet's business, Roth sees no reason for Meet's stock to have lost 10% of its value over the last three days.

Now what

Well...no reason except for valuation, maybe. As fellow Fool and tech enthusiast Rick Munarriz noted last month, Meet Group stock surged 64% in price last year. It can't come as any great surprise that, after a run like that, Meet might give back some of its gains this year.

After all, the company doesn't appear to have earned a profit last year (preliminary earnings results released last month, at least, didn't mention any GAAP profits). Still, according to analysts polled by S&P Global Market Intelligence, Meet is expected to earn a profit this year.

If it succeeds, I wouldn't be a bit surprised to see Roth proven right, and Meet stock turning around.

Rich Smith has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Match Group. The Motley Fool has a disclosure policy.