Why Priceline Group, Office Depot, and Valeant Pharmaceuticals International Slumped Today
Wednesday was another down day for the stock market, as major benchmarks finished with small losses of 0.3% or less for the session. Deteriorating relations between the U.S. and North Korea were one cause for concern among some investors, but most of the attention on Wall Street appeared to be on individual company news as the second-quarter earnings season begins to wind down. In particular, several companies suffered from bad news, and Priceline Group (NASDAQ: PCLN), Office Depot (NASDAQ: ODP), and Valeant Pharmaceuticals International (NYSE: VRX) were among the worst performers on the day. Below, we'll look more closely at these stocks to tell you why they did so poorly.
Shares of Priceline Group fell 7% after the company announced its second-quarter financial results. The online travel giant reported strong performance for the quarter, including an 18% rise in overall revenue and continuing strength in gross travel bookings gains. Yet some growth figures slowed, including the key metric of hotel room-nights booked. Priceline also gave downbeat guidance for the key summer quarter, with sales and earnings projections that were well shy of what investors had hoped to see. Priceline has a reputation for underpromising and overdelivering, but shareholders still reacted negatively to the news, perhaps reflecting the big gains that the stock has seen so far in 2017.
Image source: Priceline Group.
Source: Fool.com