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 initially trading down last night post-earnings, Polycom (Nasdaq: PLCM) shares popped 10% this morning in response to an analyst upgrade from Wells Fargo.

So What: According to our analyst tracker on Motley Fool CAPS, Wells is one of the better bankers out there -- but it's still only right on its picks about half the time.

Now What: Even Wells admits that Polycom faces stiff competition from the likes of Cisco (Nasdaq: CSCO), which just introduced a line of home videoconferencing equipment; Google (Nasdaq: GOOG) and its new "online phone" function; and of course, the impending IPO of Skype, now spun off from eBay (Nasdaq: EBAY). At a price nearly 26 times the size of its annual free cash flow, and a growth rate still stuck in the mid-teens, I wouldn't bet on the house of Wells being right about Polycom.

More likely, investors were right the first time -- and should put Polycom on hold.

Want to put Polycom info on speed-dial? Add it to your watchlist.

Google is a Motley Fool Inside Value selection. Google and Polycom are Motley Fool Rule Breakers recommendations. eBay is a Motley Fool Stock Advisor pick. The Fool has written a bull call spread on Cisco Systems. Motley Fool Options has recommended a bull call spread position on eBay. The Fool owns shares of Google.

Fool contributor Rich Smith owns shares of Google. 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.