Why Expedia Shares Tumbled

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What:Expedia shares were falling flat today, dropping as much as 11% after cutting its guidance during its quarterly report.

So what: The travel-deals merchant said that revenue jumped 24% to $1.01 billion, mostly due to acquistions in Europe, and adjusted earnings were up to $0.25 a share during the travel company's weakest quarter. Both numbers topped the analyst consensus, which called for EPS of $0.23 a share, and sales at $966 million. But, Expedia conceded it was experiencing weakness on its Hotwire site, and cut its guidance as a result.


Now what: The travel-deal industry is a crowded field, and today's report from Expedia only seems to confirm the difficulty of standing out. While the strong revenue growth we saw in the quarter looks promising, there seems to be little competitive advantage or compelling reason to invest in Expedia, as shares aren't even particularly cheap at this point. Investors should be able to find better opportunities elsewhere.

Want more on Expedia? Add the company to your Watchlist by clicking right here.

The article Why Expedia Shares Tumbled originally appeared on Fool.com.

Fool contributor Jeremy Bowman has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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