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 Lam Research (Nasdaq: LRCX) are plunging today by as much as 11% after the company reported soft quarterly earnings last night.

So what: Revenue for the quarter stacked up to $680.4 million with earnings per share of $0.58. The company beat on revenue but fell short on net income, as the consensus estimates called for $670.9 million in revenue and $0.65 in earnings per share.

Now what: Lam's bottom line was hurt pretty badly with net income dropping 63% year over year. The forward-looking guidance also wasn't anything to call home about. Needham & Company, who rates the stock a hold, added some comments this morning that the results "confirmed improvement of foundry/logic orders, but memory remains challenging." With the bottom line shrinking by nearly two-thirds, this stock deserves a bit of a haircut.

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This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.