The stock is tanking because its current-quarter revenue outlook came 29% to 37% below Wall Street estimates which is going to pressure revenue into future quarters. Stock prices are based on future earnings and not earnings of today which is why even though the company meet expectations investors are concerned that future revenue will support the stock value it was at before the announcement.
On 08/10/2012 11:59 AM, Paolo Di Francesco wrote: >> It's interesting that the stock tanked after they basically met or exceeded >> street expectations. >> > Hi Greg > > in some cases, not saying this is the case, it can happen that the more > success has a product the faster the company will be out of the market. > > This can happen in situations where the company has a product that is > destroying the market for everybody, itself too. So if a "market killer" > (i.e. a product/service that kills the market) has an unexpected success > it can also mean the end of the company. > > I will do an example: let's say that for the nature of the market, the > number of sold items will be 1 million. All companies are selling at > 100$ then one company steps in and sells at 10$. The market goes from > 100millions to 10 millions so basically if your company can survive with > only 10 millions this year that will mean it's nice, but what about next > year? If the product is very good and there is no new cool feature next > year in the next product, nobody will buy it and next year the market > will be around zero. No margin to survive next year in this market > > Well I hope that is not the case for UBNT let's wait and see :) > > just my 2 Euro cents > Paolo > > > _______________________________________________ Wireless mailing list Wireless@wispa.org http://lists.wispa.org/mailman/listinfo/wireless
