Online Travel Falls Short
Priceline (NASDAQ: PCLN) recently reported a disappointing third quarter profit outlook, expecting earnings per share of between $11.10 and $12.10. An earlier forecast had the estimate set at $12.82 per share. The company stated that economic conditions in Europe were the main reason for its forecast. Stifel Nicolaus analyst George Askew cut his rating on Priceline to a hold from a buy, stating the company “is transitioning from a momentum stock to a growth stock.” The results for Priceline are certainly not good, but this company is not being singled out. It seems the larger online travel industry is slowing down, not only losing momentum, but losing a bit of their growth as well.