What: Shares of Synchronoss Technologies (NASDAQ:SNCR) fell as much as 25.4% on Wednesday morning, exhausting an average day's trading volume in less than an hour. The stock bounced off that 52-week low, recovering to a still-dramatic 12% plunge by noon.
So what: It's another one of those mysterious no-news situations. Synchronoss hasn't issued a press release in the last two weeks, posted its most recent SEC filing last week, and isn't due to publish quarterly results until the end of October. Analyst firms aren't talking about the mobile back-office technologist, and even the rumor mill is eerily quiet.
Now what: In short, there's no obvious reason for this particular drop. Synchronoss was recently rumored to be the target of a generous buyout offer, but that talk lost momentum way back in July.
Some sources point to deeper, nameless talks about major Synchronoss customer Verizon looking for alternatives to the company's device activation services. That would indeed be a troubling development, but it's just a rumor of a rumor at this point.
As it stands, the stock is trading for 29 times trailing earnings. That's a level not seen since 2012. Synchronoss' earnings and sales have doubled since then, and the company is also diversifying its client Rolodex to reduce the risk involved in losing any single account.
Anders Bylund has no position in any stocks mentioned. The Motley Fool owns and recommends Synchronoss Technologies. The Motley Fool recommends Verizon Communications. Try any of our Foolish newsletter services free for 30 days.