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: Shares of Chinese online travel company Ctrip.com International
So what: While Ctrip's quarterly results -- $0.35 per-share profit on revenue of $129 million -- were actually in line with estimates, the forward-looking Mr. Market is choosing to focus on management's full-year guidance instead. The company now sees revenue growth of 15%-20% from the year-ago level -- solid, to be sure -- but given Ctrip's relatively lofty valuation, it wasn't quite enough to satisfy Wall Street's voracious growth appetite.
Now what: I'd look into this plunge as a possible entry point. Although it isn't growing as fast as Wall Street would like, Ctrip's fundamentals -- operating margins continue to crush those of rivals like Expedia
Interested in more info on Ctrip? Add it to your watchlist.
Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Ctrip, and The Fool owns shares of it.Try any of our Foolish newsletter services free for 30 days.