Another Down Day for Priceline.com Shares (PCLN)

Priceline.com Incorporated (NASDAQ:PCLN) shares continued their decline today, down 5% for the day and losing more than 13% since Monday (5/10).   Priceline.com shares have been "negotiated" from $250 to $212 in just three days.

Priceline Shares Get "Negotiated"
Even at $212 a share, Priceline.com's P/E stands at an expensive 21.53. The mighty William Shatner can't stop traders from "name your own price" trading on Priceline's stock.

(ZachStocks.com) Shares of Priceline.com Inc. (PCLN) are off sharply in early trading after the company announced earnings for the first quarter. On the surface, the numbers were strong. Revenue for the first quarter eclipsed a half-billion coming in at $584.4 million. This is a 26.5% increase over revenue for the first quarter of 2009. Earnings were even more impressive with EPS at $1.70, good for a 56% increase. The earnings figure beat consensus estimates by 4 cents, but the revenue came in about 2% below expectations.

While the historical numbers should be viewed positively (although analysts have become accustomed to the company actually beating expectations), the forward guidance was concerning. Management is guiding investors to expect earnings between $2.50 and $2.70 for the second quarter. This is an important quarter for the company given travelers tendency to book summer vacation trips. Revenue is expected to increase 18% to 23% which is significantly below the 25.8% average expectation.

Guidance for the second quarter still reflects growth for the company, but challenges are certainly pressuring that growth:

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