MER share price took a dip after announcing record earnings (and beating estimates) on July 17th. One possible explanation is the street fears potential losses from MER?s sub-prime mortgage exposure. However, only 2% of MER revenues come from sub-prime mortgage activities, and they have a well diversified earnings stream.
Additionally, MER has recently repurchased $2 billion worth of common stock (a good sign) and has $4 billion remaining under its authorization.
Disclosure: Author is long MER