Priceline.com, the name-your-price online retailer of airline tickets, hotel rooms and other services, became the latest dot-com to issue a revenue warning that it would not meet third-quarter expectations and, as a result, had to face investors' wrath. Priceline's shares dropped 42.3% to $10.75 at the end of trading Sept. 27, setting a new 52-week low, after alerting analysts that September airline ticket sales were lower than expected, resulting in a $20 million decline in revenue. In the third quarter of 1999, Priceline.com reported revenue of $152.2 million. The news triggered sell-offs in other leading dot-com stocks, namely Yahoo!, whose shares fell below $100 for the first time since November 1999. Yahoo!, whose stock traded as low as $88, ended the day's trading at $90.38, a 12% drop.
Copyright September 2000, Crain Communications Inc.