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 online genealogist Ancestry.com
So what: Last night's second-quarter report was just fine, exceeding analyst estimates on both the top and bottom lines. However, the third-quarter outlook was less than enthusiastic, which was enough to send the stock plunging.
Now what: This drop was the opposite of the reaction three months ago, when news of bulging subscriber lists gave the stock an instant 26% lift. All things considered, Ancestry shares still trade some 13% above the levels seen right before that first-quarter update and they have nearly doubled over the past year, so it's hard to get too upset over this correction.
Don't panic. If Rule Breakers investing has taught us anything, it's the value of patience as the market reacts, overreacts, and adjusts to what these unpredictable companies are up to. Even the top performers on that scorecard, such as Green Mountain Coffee Roasters
Interested in more info on Ancestry.com? Add it to your watchlist.
Fool contributor Anders Bylund holds no position in any of the companies discussed here. Motley Fool newsletter services have recommended buying shares of Baidu, Green Mountain Coffee Roasters, and Ancestry.com. We have also recommended creating a lurking gator position in Green Mountain Coffee Roasters as well as shorting that stock. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days. The Motley Fool is investors writing for investors.