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: After a nearly 30% pop on Tuesday following reports of a potential merger, shares of Chinese online classified ad specialist Inc (ADR) (NYSE:WUBA) pulled back as much as 9.7% early Wednesday.

So what: According to the Financial Times yesterday, sources familiar with the situation said and competitor not only signed a memorandum of understanding one month ago, but also were expected to announce a merger on Wednesday. Today's drop, then, seems to be a reflection of the fact that a merger has not been confirmed.

Now what: Of course, the day isn't over yet. And keep in mind that as of this writing, shares of stand around 16% higher than they started the week. While nothing is guaranteed, this indicates the market is holding out hope that the deal -- which could result in significant cost and competitive synergies -- might still happen.

But I also feel the need to reiterate that such a merger would almost certainly be subject to antitrust concerns, so investors should expect speed bumps along the way if a merger is in the works. Again, that's why I wouldn't blame investors for taking at least some of their chips off the table given this week's impressive gains.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.