Option premiums with one day to go were huge and apparently for good reason. The headline says earnings miss with a $25 drop after-hours. The conference call may tell a different story, but I don’t own it. Tomorrow should show what this market is made of, does the rest of technology sell off or is it just contained. I think the latter (morning swoon and later day recovery) but we will find out soon enough.
That said, the fundamentals aren’t bad at all. At the current rate, they will earn $32 a share this year, and are priced around a P/E of 17.. Revenues grew at 27% which is tremendous for a company this size, so I wonder if that sell off is already overdone, by the way more than 50% (of that revenue) is from overseas. Gross margins are an unbelievable 65% but operating margins came in lower, mostly because they hired a bunch of people and all employees got at least a 10% raise. You may have misgivings about going to the stock but since inception it has been a great place to go to work.
Update: Methinks I stick in a bid for the May 550’s today/Monday.