Ancestry.com Gets Rocked: Is the Sell-Off Warranted?
The following video is part of our "Motley Fool Conversations" series, in which senior technology analyst Eric Bleeker and chief technology officer Jeremy Phillips discuss topics across the investing world.
As we come to the close of earnings season, tech companies are getting sold off left and right. Cisco just warned of a slowdown ahead, leading to many IT-spending-reliant companies being sold off. But the pain had started before Cisco's warning. Despite earnings that blew away expectations, Apple has since traded back down to levels seen before its earnings. One notable company has managed to hold on to gains even as clouds emerge over the tech sector: Ancestry.com delivered solid earnings and recently announced a new program that could change the business's trajectory. However, news of cancellation of a TV show Ancestry relied upon has sent its shares crashing below its pre-earnings price. Jeremy and Eric take a look at whether Ancestry and other tech companies that have been rocked despite great earnings are a buy.
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At the time this article was published Eric Bleekerowns shares of Cisco Systems and IPG Photonics. Jeremy Phillips has no positions in the stocks mentioned above. The Motley Fool owns shares of Apple, Ancestry.com, and IPG Photonics.Motley Fool newsletter services recommendAncestry.com, Apple, and IPG Photonics. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.