Its amazing how the stock market will respond at times. Ancestry.com dropped today by 20% on news that its revenues were up, they had 22% more subscribers, and they beat analyst expected earnings per share. What? How does a company’s stock fall on what seems like great news. Check out the article for yourself at MotleyFool.com:
Ancestry.com Goes Out on a Family Tree Limb
By Rick Aristotle Munarriz
Bears have overrun Ancestry.com‘s (Nasdaq: ACOM ) quarterly family reunion.
Shares of the leading genealogy website operator were down by roughly 20% this morning after the company posted financial results that inherited trouble spots in key metrics and ended with a soft outlook for the current quarter.
The fourth quarter itself wasn’t too shabby on the income statement. Revenue climbed 26% to $104.2 million, fueled by a 22% increase in subscribers and a healthy year-over-year increase in average revenue per user. Ancestry.com’s profit of $0.40 a share was ahead of both the $0.25 a share it earned a year ago and the $0.34 a share that analysts were expecting.
So far, so good — but now let’s introduce the rest of the brood.
Click here to read the rest of the article. And, don’t worry, Ancestry is not going anywhere, and it will likely continue to grow for some time.