lost a quarter of its value Monday after the company missed Wall Street estimates and said the SEC is looking into insider trading in the company’s stock.
The company reported fourth-quarter earnings of 9 cents a share, but that was four cents below Wall Street estimates, as the company got hit by costs from an old stock giveaway program. The company said it expects the SEC probe to have no effect on its operations, but the news of the inquiry and disappointing results had investors heading for the exits.
Travelzoo soared more than 1,000% last year, but shares of the high-flyer are now down 50% from their 52-week high.
Stocks fell once again Monday, led lower by semiconductor warnings and downgrades.
The Nasdaq lost 25 to 2008, the S&P 500 dropped 4 to 1163, and the Dow fell 24 to 10,368. Volume declined to 1.49 billion shares on the NYSE, but rose to 2.15 billion on the Nasdaq. Decliners led 20-13 on the NYSE, and 21-9 on the Nasdaq. Downside volume was 66% on the NYSE, and 80% on the Nasdaq. New highs-new lows were 90-34 on the NYSE, and 50-83 on the Nasdaq.
After the close, Netflix
beat estimates. palmOne
announced the departure of its CEO, and Brocade
restated results from 2002-2004 because of stock option issues and named a new CEO.
During the day, Infineon
warned and Cymer
fell 6% on a Morgan Stanley downgrade.
surged 13% on a deal with eBay
, but eBay fell 4% despite an upgrade from Jefferies & Co.
gained 16% on news of an offer from parent France Telecom
surged 12% after raising guidance.
and Cabot Micro
fell on downgrades.
plunged 53% on plans to lay off most of its employees and explore strategic alternatives.