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 IP-based communications specialist BroadSoft
So what: The company beat earnings and revenue estimates in the just-reported third quarter, and by quite the margin too. Moreover, next-period guidance points to another quarter of strong sales. Impressive as it was, the report still wasn't strong enough to support a stock that had gained 53% over the last three months.
Now what: Networking gear makers have disappointed time and again this earnings season in a building Greek chorus (pun intended) of weak service-provider spending. That gloomy choir includes voices very close to BroadSoft's timbre, such as direct competitors Cisco Systems
Interested in more info about BroadSoft? Click here to add it to My Watchlist.
Fool contributor Anders Bylund holds no position in any of the companies mentioned. The Fool owns shares of and has created a bull call spread position on Cisco Systems. Motley Fool newsletter services have recommended buying shares of Cisco Systems. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinion, but we all believe that considering a diverse range of insights makes us better investors. Check out Anders' holdings and bio, or follow him on Twitter and Google+. We have a disclosure policy.