Why Shares of Expedia Group Were Slammed Thursday
What happened
Shares of online travel agent company Expedia Group (NASDAQ: EXPE) took a huge hit on Thursday, falling more than 25% as of 12:45 p.m. EST.
The
So what
Expedia Group said its total revenue rose 9% year over year to $3.56 billion, missing analysts' average forecast for revenue of $3.58 billion. Non-GAAP earnings per share fell 7% year over year to $3.38 -- well below a consensus estimate for $3.80.
One of the factors weighing on the quarter's results was a 10% year-over-year decrease in average revenue per ticket as the result of "reclassification of certain partner fees to other revenue and a shift in product mix," management said in the third-quarter earnings release.
Now what
Thanks to a reduced outlook for profitability from Expedia's online hotel booking website, Trivago, and home-lodging platform, VRBO, Expedia CEO Mark Okerstrom said on the company's
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