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 Avid Technology (Nasdaq: AVID) rose as much as 18% today after the digital media company announced earnings.

So what: Adjusted earnings of $0.37 per share in the quarter were much better than the $0.08 analysts had expected, and the company reported a narrow loss without adjustments. Revenues were up 11.8% as demand for the company's products picked up despite slowing services business.

Now what: The improving fundamentals are encouraging, but the company is still reporting a loss despite the large adjusted earnings number. I would like to see a little more growth and a move into GAAP net income before getting too excited about this stock. I'll leave today's move alone, but keep an eye on continued improvement in the future.

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