Why IPG Photonics Stock Dropped Today

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What happened

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Shares of IPG Photonics (NASDAQ: IPGP) fell 10.4% on Monday, despite no material negative news for the fiber laser and amplifier specialist.

To be fair, in a press release this morning, IPG Photonics did announce its acquisition of Ontario, Canada-based Laser Depth Dynamics (LDD), a provider of quality monitoring and control solutions for laser-based welding applications. But terms of the deal weren't disclosed, and LDD is a 16-employee company. With IPG's market capitalization standing tall at roughly $10.8 billion as of this writing, the purchase was almost certainly too small to move the stock on its own.

So what

But Monday wasn't exactly a pretty session for tech stocks, anyway. The tech-heavy NASDAQ Composite index fell over 1% today, while the Technology Select Sector SPDR Fund plunged 1.6%. And even after today's decline, IPG Photonics stock is still up more than 100% so far in 2017 -- a happy consequence of several stellar quarters as IPG's customers increasingly adopt better-performing lasers.

It's relatively unsurprising, then, to see some skittish short-term investors taking their profits off the table as the broader market pulls back.

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Now what

As it stands, IPG isn't due for another formal quarterly report until February 2018. But in the meantime -- though it certainly doesn't feel good to see your stock fall on any given day -- I think shareholders would do well to continue focusing on IPG's actual business, and to pay little attention to these kinds of no-news moves.

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Steve Symington has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends IPG Photonics. The Motley Fool has a disclosure policy.