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 Acacia Research (NASDAQ:ACTG) fell 11% today after the company released disappointing earnings.
So what: Revenue dropped 54% in the second quarter, to $23.1 million, and the company lost $12.5 million, or $0.26 per share, during the quarter. On an adjusted basis, the company earned $0.13 per share, but even that was well below the $0.47 analysts expected.
Now what: Results can fluctuate wildly quarter to quarter but the general trend for Acacia is downward, and that's concerning. For the six months ended June 30, the company's revenue fell 33%, and earnings dropped 67%, mainly due to higher litigation costs. The bottom line is that this is a highly risky stock, and technology companies that may license their patents don't necessarily see the patent portfolios as the deterrent management hoped it would be.
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Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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