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 prepaid debit card provider Green Dot
So what: Within the first 15 minutes of trading, the stock plummeted as much as 17.5%, only to quickly rebound and recover most of that loss. At the time of this writing, Green Dot is down only about 4.6%, with a whopping 1.1 million shares having already changed hands (versus its average volume of just 285,500).
Now what: Investors should keep today's move in proper perspective. Without any news from the company, I'm chalking the wild swing up to the normal volatility that comes with a relatively young, high-growth, high-P/E stock. Valuation aside, Green Dot is a well-positioned long-term play on the nearly 60 million "underbanked" Americans, and today's share price roller-coaster ride shouldn't do a whole lot to change that.
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