Skip to main content

Originally published Friday, July 26, 2013 at 9:46 AM

  • Share:
  • Comments ((0))
  • Print

Expedia shares tumble as competition heats up

The Associated Press

No comments have been posted to this article.


Expedia turned into a bad trip for shareholders Friday.

Shares plunged 26 percent when the market opened after it reported late Thursday that second-quarter profit fell by one-third, stung by online competition that has grown increasingly intense.

The company badly missed Wall Street projections and expenses for sales and marketing grew much faster than revenue. The money went toward its trivago, Brand Expedia and lines.

Jefferies & Co. analyst Brian Fitzgerald said that Expedia also had weakness at its Hotwire site.

“The environment is growing more competitive, especially in the U.S.,” Fitzgerald wrote. He cut his price target to $59, from $68. He maintained a “hold” rating on the stock.

One of the problems this quarter was former subsidiary, TripAdvisor, which hurt Expedia as it altered the traffic that it had once referred to Expedia for bookings.

Cantor Fitzgerald analyst Naved Khan maintained his “buy” rating, believing the hit from TripAdvisor will be temporary. He also says Expedia is improving the rate at which it converts a visit to its website into a sale.

Expedia shares fell $16.91 to $48.09 in morning trading. That’s their lowest price since early 2012.

News where, when and how you want it

Email Icon

 Subscribe today!

Subscribe today!

99¢ for four weeks of unlimited digital access.



The Seattle Times

The door is closed, but it's not locked.

Take a minute to subscribe and continue to enjoy The Seattle Times for as little as 99 cents a week.

Subscription options ►

Already a subscriber?

We've got good news for you. Unlimited content access is included with most subscriptions.

Subscriber login ►