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 web-property owner Demand Media (NYSE: DMD) were in demand today as investors pushed up the price as much as 17% before it settled back down with a more modest gain.

So what: Demand's first quarter came up aces. Revenue excluding traffic-acquisition costs was up 50% to $76 million on a 77% gain in content and media revenue. On a non-GAAP basis -- that is, excluding items such as stock-based compensation and amortization of intangibles -- Demand reported earnings per share of $0.06, which doubled last year's $0.03 tally. Analysts were looking for $0.04 in per-share profit on $69 million in revenue.

Now what: The results have to be somewhat of a relief to Demand shareholders, after worries that a search-algorithm overhaul by Google (Nasdaq: GOOG) would cramp Demand's style. Of course, while the first quarter may have come up better than expected, management did note that it has taken the Google issue seriously and is targeting some changes that will improve the quality of the company's content.

When it comes to the investment prospects of Demand's stock, you can count this Fool among the naysayers. With an underwhelming business model and a lofty valuation, I think there are much better places for investors to look.

Want to keep up to date on these stocks?

The Motley Fool owns shares of Google, which is a recommendation of Motley Fool Inside Value and Motley Fool Rule Breakers. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.   

Fool contributor Matt Koppenheffer has no financial interest in any of the companies mentioned. You can check out what Matt is keeping an eye on by visiting his CAPS portfolio, or you can follow Matt on Twitter @KoppTheFool or on his RSS feed. The Fool's disclosure policy prefers dividends over a sharp stick in the eye.