Priceline Disappoints

Shares of Priceline.com

are trading lower by 13.88% to $215.02 in the pre-market this morning after the company’s guidance fell short of the Street’s expectations. The company did report that Q1 profits more than double as compared to the year prior, but stocks trade on the future, not on the past. Proceline.com, CEO Jeff Boyd, said that the eruption of the Icelandic volcano disrupted travel severely in April and that cancellations flooded in; he was quick to point out that the volcano is causing limited air-space closures and that the negative effect from it should wane in time. He also noted that civil unrest in Thailand had forced Priceline's Thai operations to relocate its office, saying, “Business for Bangkok and other Thai destinations is under pressure at both Agoda and Booking.com.” Boyd said that despite this overall trend, the international travel market remains strong.