Why LogMeIn Shares Got Crushed
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 LogMeIn have gotten crushed today by as much as 13%, as the company is giving back gains from yesterday's patent victory.
So what: The company had announced that it was found not guilty of infringement, which 01 Communique had claimed. Shares had promptly jumped as much as 22% yesterday following the news, but it seems like shares were getting a little ahead of themselves.
Now what: Wunderlich analyst Richard Baldry said yesterday's jump was a little excessive, noting that while it's a positive development, it's not a game-changing verdict. Baldry characterized the victory as a "minor positive," and that it was merely a "distraction" that's good to get out of the way so the company can refocus on the actual business. The verdict is unlikely to have a meaningful impact on the long-term fundamentals.
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The article Why LogMeIn Shares Got Crushed originally appeared on Fool.com.Fool contributor Evan Niu, CFA, has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. 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.