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 e-commerce solutions specialist Digital River
So what: While its third-quarter results were largely in line with estimates, Digital River's fourth-quarter profit warning -- it now sees EPS of $0.32-$0.35 versus the consensus of $0.39 -- is forcing analysts to continue lowering their growth estimates. In fact, the shares are now down nearly 50% over the past six months alone and are currently flirting with the 52-week low.
Now what: I'd expect the shares to stay flattish in the short term. One of the big worries surrounding Digital River is its dependence on software giant Microsoft
Interested in more info on Digital River? Add it to your watchlist.
Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of Microsoft. Motley Fool newsletter services have recommended buying shares of Digital River and Microsoft. Motley Fool newsletter services have recommended creating a bull call spread position in Microsoft. Try any of our Foolish newsletter services free for 30 days.