When a stock gets jerked around in either direction, it’s often tricky to divine exactly what investors are thinking — especially lately, when the U.S. debt ceiling crisis has financial markets set on a hair trigger.

Markets opened up sharply this morning on expectations that a compromise on the debt ceiling is finally at hand. But shares in realtor.com operator Move Inc. started out in the other direction, briefly falling 12 percent from yesterday’s closing price of $17.51.

Since Move happened to announce its latest acquisition (of FiveStreet Inc.) this morning, it’s natural to assume that the drop in share price had something to do with the acquisition. That’s what Steve Symington has done on Motley Fool, concluding that today’s volatility “appears to be more a knee-jerk reaction to the uncertain acquisition terms.”

But Move would have been required to disclose the acquisition terms in a regulatory filing if they would have a material impact on results. Since Move made no such disclosure today, it’s unlikely that the company shelled out a huge sum for the 2-year-old startup, or that the acquisition will be a significant source of new revenue, at least for now.

Whatever the cause of the volatility, shares in Move have since joined today’s market rally, and were up more than 2 percent in early afternoon trading. Source: fool.com

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
Success!
Thank you for subscribing to Morning Headlines.
Back to top
We're giving away 3 free ICLV tickets at Connect Now next week. Register and attend live for your chance to win!REGISTER×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription