The company's quarterly results weren't all that bad. It was mainly from a guidance standpoint that saw the company dip in a big way.
This is a company that typically grows in the mid 20%~ range, or at least it has over the last year or so. So when they guided to high teens revenue growth and reported that gross margins will dip and operating expenses will increase, I'm not all that surprised the stock has retraced a bit here.
Lower revenue growth combined with dipping margins and higher expenses are kind of a triple whammy to the bottom lines. So, the market is likely just adjusting its price for these forward looking expectations.
Is it a bit of an overreaction? I'd say yes. The company's guidance was a bit weaker than expectations yes, but I don't believe it to be so bad it should go down by 25%+.
Was likely a bit ahead of itself at the $105 mark, and now is being beaten down a bit based on some below average outlook.
With a long-term mindset here, could be a good entry point. Just know there could be extensive volatility with this one both to the upside and downside if its earnings and outlook continue to be sporadic.