Priceline.com’s stock tumble yesterday apparently dragged down Yahoo with it.
Priceline’s stock fell 7 57/64 to 10 3/4 in late day trading, a loss of more than 42 percent. A staggering fall precipitated by Priceline’s announcement that third quarter revenues would fall short of expectations. The company claimed its airline ticket sales would be down between $20-$25 million. The loss in airline ticket sales, which make up 85 percent of the Norwalk, CT-based company’s business, was attributed to special fares offered by airlines and fuel surcharges.
While not nearly as dramatic as Priceline’s stumble, Yahoo fell 12 1/16 to 90 3/8, a drop of more than 11 percent. Yahoo is now trading just $7 over it’s 52-week low. According to wire reports, analysts blamed Yahoo’s troubles on investor skittishness caused by Priceline’s problems.
