Priceline Inc (NASDAQ:PCLN) fell more than 8% today pre-market, despite beating analyst estimates with EPS of $35.22. However, the earnings guidance by PCLN has been disappointing. It saw an after-market decline of 6.5%, and the decline continues today pre-market as well. Stockal’s Social Media Pulse has been lower than normal, indicating a negative sentiment trend.
Travel industry seems to have seen a downfall due to ad wars. PCLN CFO Daniel Finnegan, during the Q3 announcements said that the advertising spend will likely have a modestly negative impact on top-line growth in the coming quarters and Priceline will be taking further steps to optimize the efficiency of the performance advertising spend. PCLN is seeing a slowing growth due to the size of the business.
Analysts have been consistently bullish about the stock. Stockal Confidence Meter has been above 80% for more than three months, indicating analyst confidence in the stock’s performance. Most recent analyst ratings include RBC Capital, Needham, and Morgan Stanley, which are all bullish on the stock.
