Were Medidata Solutions, Inc. Earnings Really That Bad?

The company's shares lost about one-quarter of their value, but why?

Brian Stoffel
Brian Stoffel
Apr 30, 2014 at 6:30PM
Health Care

Medidata Solutions, Inc. (NASDAQ:MDSO) shareholders just endured a pretty tough week. Though shares were up 300% over the last three years, they lost about one-quarter of that value last Tuesday alone.

The company focuses on providing cloud solutions for drug companies. Specifically, its software helps pharmaceutical companies collect, analyze, and manage information that goes hand in hand with drug trials. Business has been growing briskly, but earnings that came in well below Wall Street's expectations caused last week's precipitous drop.

But were things really that bad? In the video below, The Motley Fool's Brian Stoffel digs into the three most important numbers for investors to keep their eyes on moving forward and what he thinks of shares right now.