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 communications networking technologist Ubiquiti Networks (UI -1.69%) sank nearly 23% today after its quarterly results and outlook disappointed Wall Street.

So what: The stock has plunged in recent weeks on worries over slowing demand, and today's quarterly results, coupled with just in-line guidance, only reinforce those concerns. While Ubiquiti's fiscal 2014 third-quarter earnings per share of $0.50 edged out Wall Street by $0.02 and its top line grew 78%, a sharp 300% spike in inventory from January levels suggests that its near-term margins will be under heavy pressure.

Now what: Management now sees fourth-quarter EPS of $0.47 to $0.51 on revenue of $147 million to $153 million. "Ubiquiti is highly proficient at translating R&D into future revenue and we will continue to make investments that will grow and diversify our platform offerings," said founder and CEO Robert Pera in a press release. "We continue to quickly evolve and execute on our strategic plans and believe that we are building a dominant platform with a bright future." More important, with Ubiquiti shares now off more than 40% from their 52-week high and trading at a forward P/E in the mid-teens, there's plenty of juicy upside to buy into that bullishness.