Why LightInTheBox Holding Stock Lit Up

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Chinese online retailer LightInTheBox Holding Co Ltd surged 17% today after its current-quarter outlook impressed Wall Street.

So what: LightInTheBox shares have plummeted over the past year on concerns over rapidly decelerating growth, but today's upbeat Q2 guidance naturally eases a bit of that worry. In fact, the updated revenue view represents a year-over-year increase of about 20%, suggesting that its competitive position is at least stable. 


Now what: Management now expects Q2 revenue of $86 million to $88 million, slightly ahead of its prior view of $84 million to $86 million. "We are encouraged by the better-than-expected results for the second quarter," said Chairman and Chief Executive Officer Alan Guo. "We have made good progress in recent quarters, particularly with respect to upgrading our product offerings and enhancing our customer experiences." Of course, when you couple today's double-digit rally with LightInTheBox's still-worrisome expense growth, staying on the sidelines seems prudent. 

Breaking: This small cap stock is poised to soar higher
Growth stocks jump up and down on a daily basis, but the smartest investors know the path to riches is finding these big winners early. The mission of The Motley Fool's Rule Breakers team is to identify these once-in-a-generation stocks. This team of analysts recommended Baidu in 2006 (up +2,000%) and Chipotle in 2007 (up +800%). And luckily for you (and their thousands of existing members), the team believes it has found its next big winner. Click here for your copy of this timely report.

The article Why LightInTheBox Holding Stock Lit Up originally appeared on Fool.com.

Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.


Increase your money and finance knowledge from home

Professional Vs Do it Yourself Investing

Should you get advice or DYI?

View Course »

Asset Allocation

Learn the most important step in structuring an investment portfolio.

View Course »

Add a Comment

*0 / 3000 Character Maximum