Please ensure Javascript is enabled for purposes of website accessibility

Why Inc Stock Dropped (Again) Today

By Steve Symington – Jul 7, 2015 at 12:44PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Again with no company-specific news, fell today as Chinese stocks pulled back.

What's happening: As of Tuesday at 11:30 a.m., shares of (SOHU -2.39%) were down nearly 10% for the second day in a row amid a broad pullback in Chinese tech stocks.

Why it's happening: Yesterday, Sohu plunged after investors effectively ignored actions by Chinese regulators intended to stabilize the country's markets. To be sure, the Shanghai Composite Index has pulled back 26% over the past month following a nearly 60% rise earlier in the year, and the tech-heavy Shenzhen Composite Index has fallen 5.3% so far in today's trading alone. As unease over the markets has increased this week, hundreds of Chinese firms have also suspended trading in a further attempt to stem the declines.

Again, though -- and however painful these declines might be -- shareholders should strive to maintain a level head during this turmoil, and to keep it in perspective as coupled with the year's earlier gains. In the end, these moves have little to do with's underlying business. Over the long term, that's where patient investors' focus should remain.

Steve Symington owns shares of Apple. The Motley Fool recommends Apple and The Motley Fool owns shares of Apple. 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.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.