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After Priceline and TripAdvisor reported earnings after the bell Monday, investors sent shares plummeting 8.3% and 9.4% respectively in late trading. Expedia also fell 2.1% in Monday's after-hours session, following a near 20% drop after that company reported earnings last month. Priceline stock falls more than 6% after weak fourth-quarter guidance. TripAdvisor plummets more than 10% after earnings. Ads are seen as essential to driving the reservations business that accounts for the vast majority of these companies' revenues. So when online travel firms are forced to spend more, the bottom line can often take a hit, and all seem to suggest higher costs or a new approach going forward. While all three companies' valuations were falling Monday evening, the stocks have been performing differently this year. Priceline stock is up 29.8%, TripAdvisor stock is down 14.8%, and Expedia stock is up 8.6% in 2017, while the S&P 500 index is up 15.7%. Read original article |
