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What: Shares of E Commerce China DangDang Inc (NYSE:DANG) were getting banged up today, falling as much as 21% after coming up short on the top line in its first-quarter earnings report.
So what: The Chinese online retailer posted earnings of $0.01 per share, better than estimates at break even; but revenue growth of 30%, to $279.2, million missed as analysts had expected $285.6 million. CEO Peggy Yu Yu said the company continued to make "good progress in transforming Dangdang from an online bookstore into an integrated online shopping mall," and it "continued on its path to profitability."
Now what: Guidance for the current quarter was also a bit weak, as Dangdang sees revenue of $311 million against expectations of $320.2 million. Dangdang's stock got punished also because peer Vipshop Holdings soared after its earnings report came out, and because the stock had been bid up significantly during he week, gaining 13% before today's fall. A downgrade from Bank of America to Neutral also weighed on the stock, as B of A sees increasing competition and declining revenue per customer as headwinds for the company. Still, the overall growth story remains intact. I wouldn't get too worked up about today's sell-off.
Jeremy Bowman 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.