Why AutoNavi Shares Lost Their Way

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 navigation specialist AutoNavi lost their way today, down by as much as 18% after the company reported worse-than-expected earnings.

So what: Revenue in the first quarter came in at $34.3 million, which translated into non-GAAP earnings per share of $0.17. Both figures were well below consensus forecasts, which were calling for $40.4 million in sales and $0.19 per share in adjusted profit.

Now what: Guidance for 2013 pegs revenue in the range of $168 million to $176 million, compared to the $173.4 million forecast. AutoNavi separately announced that it has formed a strategic alliance with Alibaba, where the e-commerce company will take a 28% stake after investing $294 million. That would make it AutoNavi's largest shareholder.

Interested in more info on AutoNavi? Add it to your watchlist by clicking here.

It's incredible to think just how much of our digital and technological lives are almost entirely shaped and molded by just a handful of companies. Find out "Who Will Win the War Between the 5 Biggest Tech Stocks?" in The Motley Fool's latest free report, which details the knock-down, drag-out battle being waged by the five kings of tech. Click here to keep reading.

The article Why AutoNavi Shares Lost Their Way 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.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.