AutoNavi Shares Dropped: What You Need to Know

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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 map services specialist AutoNavi (NAS: AMAP) lost their way today, falling as much as 12% on relatively heavy trading.

So what: Online media companies in China are dropping like flies today as Internet media generalist SINA (NAS: SINA) fell as far as 8.3% and digital video slinger Yoku.com (NYS: YOKU) lost 12.8% at worst. AutoNavi shareholders had their nerves tweaked last week with a disappointing quarterly report followed by at least one analyst downgrade, so it didn't take much to release the tension in a wave of heavy selling.

Now what: After a pretty hot IPO in the summer of 2010, AutoNavi shares have fallen 35% and are setting new all-time lows right now. As if to show that all Chinese Internet stocks aren't the same, Baidu.com (NAS: BIDU) shares have nearly doubled at the same time. AutoNavi stock is fairly cheap by the standards of online media businesses, but analysts are worried about rising operating costs. Keep an eye on the bottom-line margins over the long run, dear Fool.

Interested in more info about AutoNavi? Click here to add it to My Watchlist.

At the time this article was published Fool contributor Anders Bylund holds no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Baidu and SINA. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinion, but we all believe that considering a diverse range of insights makes us better investors. Check out Anders' holdings and bio, or follow him on Twitter and Google+. We have a disclosure policy.

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