Why Priceline Stock Is Slumping Today

Share of online travel giant Priceline Group (NASDAQ: PCLN) tumbled on Wednesday despite a strong second-quarter report. Priceline's guidance seems to be the culprit, with the company calling for a slowdown in travel bookings and earnings below analyst expectations. As of 12:36 p.m. EDT, the stock was down 7.3%.

Priceline reported second-quarter revenue of $3.02 billion, up 18.3% year over year and $30 million higher than the average analyst estimate. Gross travel bookings were $20.8 billion, up 16% year over year, and up 19% adjusted for currency. The company booked 170 million room nights during the quarter, up 21% year over year, while airline ticket bookings fell 8.7% to 1.8 million.

Image source: Priceline Group.

Source: Fool.com