Riverbed Technology Shares Plunged: What You Need to Know
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 Riverbed Technology (NAS: RVBD) fell as much as 18% in early trading after competitor Silver Peak Systems issued a press release last night that stated it had counter-sued for patent infringement. Riverbed filed a claim against Silver Peak in June.
So what: Riverbed has since responded to the announcement, with general counsel Brett Nissenberg asserting in a press release that Silver Peak's counter-claim is "without merit" and an "expected reaction" to Riverbed's initial suit.
Now what: Investors don't seem to be convinced. With the stock still off more than 15% as the closing bell approaches, they're either afraid of Silver Peak's counter, or nervous about lousy earnings reports from both Blue Coat Systems (NAS: BCSI) and NetApp (NAS: NTAP) . Either way, it's a tough day for those who own shares of Riverbed Technology. Where do you stand on this stock? Would you use the sell-off as a buying opportunity? Weigh in using the comments box below.
Interested in more info on Riverbed Technology?Add it to your watchlist.
At the time this article was published Fool contributorTim Beyersis a member of theMotley Fool Rule Breakersstock-picking team. He didn't own shares in any of the companies mentioned in this article at the time of publication. Check out Tim'sportfolio holdingsandFoolish writings, or connect with him onGoogle+or Twitter, where he goes by@milehighfool. You can also get his insightsdelivered directly to your RSS reader.Motley Fool newsletter serviceshave recommended buying shares of Riverbed Technology. 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.
Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.