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What: Shares of technology company NetSuite
So what: In the second quarter, revenue rose 29% to $74.7 million, and earnings per share tripled to $0.06. Analysts had expected revenue to be $73.4 million and earnings per share of $0.04.
Now what: The company's software-as-a-service model is picking up steam, and the strong revenue growth is impressive in the current environment. My only problem is the incredible price that investors have to pay for the stock right now. The company's market cap is now more than $4 billion, and with analysts estimating that 2012 earnings per share will be $0.21, the stock trades at an incredible 277 times 2012 earnings. That's just too much for this Fool to pay, so I'll sell this pop today.
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Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.
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