Let the dust settle on this one but then it will go higher
This was a very positive ER and management is making the necessary investments to gain market share in the future. They grew profits, exceeded estimates and the stock gets walked down. There may be some turbulence but once the dust settles, I believe it goes higher. 20% growth is nothing to be upset about and their brand is only getting more popular.
Theyre safe in the short term, but Google will be going hard after them over the long run. i doubt they'll be able to compete with GOOG. Also, with rising investments into this brand equity, Im not sure they can keep growing 20% on the bottom line over the long run. hence, this 30x multiple may not be fully justified or be fair at best. Way better opportunities out there at this pps. i'll revisit once it gets back into the mid $30's.
I agree. Their name recognition and their product are unsurpassed. I see this rebounding sooner rather than later, much like SNDK, which was first sold down after its latest ER and since then has risen.