Shares of Yandex (NASDAQ: YNDX) , the "Russian Google," closed down 9.2% on Wednesday, after Reuters reported that Russia's biggest internet portal is expanding even farther away from its core business. Yandex, which inked a deal giving it control over Uber's Russian operations last year, is acquiring a "start-up fuel delivery service" known as Toplivo v Bak ("fuel into the tank").
When summoned by smartphone, Toplivo v Bak travels to a customer's car and adds fuel to its gas tank -- or at least that's its current model. Yandex says the company will now cease providing this service and focus on providing fuel to Yandex's own Yandex.Drive fleet.
Investors don't seem too keen on the idea, selling off Yandex stock in response to the news. Still, it's worth noting that there's svery little news for them to be reacting to. According to Reuters, Yandex did not disclose how much it would be paying to acquire Toplivo v Bak, or just how big its new subsidiary is in terms of revenue or profit.
For that matter, there is so far no mention of the deal whatsoever on Yandex's investor-relations page, nor any filing with the SEC that might shed further light on the details of this acquisition.
Long story short, investors don't know either the costs of this deal, or the potential benefits. If you ask me, there's therefore little reason for people to be selling the stock on this news -- or to be buying it, for that matter.
10 stocks we like better than Yandex
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has quadrupled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Yandex wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of August 6, 2018