Priceline plunged 15% after hours Tuesday after missing revenue estimates and warning.
Earnings of 24 cents a share beat estimates by three cents, but revenues of $243.4 million came in shy of $251.64 estimates. The company said fourth-quarter earnings will come in at 2-8 cents a share, well below 11-cent estimates.
Priceline said results were hurt by weakening demand for airline tickets that began in September and has continued into the fourth quarter.
Priceline said it plans to advertise to boost airline ticket sales, and said it expects sustained growth next year.
InterActiveCorp , owner of Expedia and other travel-related properties, slipped 2% on the news. IACI reports results tomorrow morning.
Stocks fell during the day on the biggest jump in layoff announcements in a year. Cisco reports earnings tomorrow night, and October payrolls data will be reported Friday morning.
The Nasdaq lost 9 to 1967, the S&P 500 fell 5 to 1053, and the Dow slipped 19 to 9838. Volume rose to 1.38 billion shares on the NYSE, and 2.1 billion on the Nasdaq. Advancers led 17-15 on the NYSE, but decliners led by a few issues on the Nasdaq. Downside volume was 63% on the NYSE, and 53% on the Nasdaq. New highs-new lows were 435-6 on the NYSE, and 402-10 on the Nasdaq.
Novell soared and Red Hat
fell after Novell’s acquisition of SUSE Linux recast the Linux landscape.
Network Appliance slipped on its own acquisition, and McData
fell 4.5% on a warning.
Microsoft lost 2.3% on antitrust pressures.
Dot Hill soared 13% on an upgrade.
Extreme surged 8% on a deal with Avaya
.
Market Commentary: For our free daily market commentary and technical analysis, please visit the InternetStockReport.com home page at:
http://www.InternetStockReport.com.