Kayak, Zipcar, Groupon: Tech Winners & Losers
The deal values Kayak at roughly $40 a share, and will strengthen Priceline's business, as it continues to try and grab market share in the online travel space.
"Kayak has built a strong brand in online travel research and their track record of profitable growth is demonstrative of their popularity with consumers and value to advertisers," said Priceline CEO Jeffery Boyd, in a statement released after market close. "We believe we can be helpful with Kayak's plans to build a global online travel brand."
Zipcar (ZIP) shares surged 18.21% to $7.14 after the car sharing company beat analysts' earnings expectations.Zipcar reported that third-quarter revenue rose 15% to $78.2 million and earned 10 cents a share. Analysts expected revenue of $75.6 million and earnings of 1 cent a share. Zipcar forecast fourth-quarter revenue between $67 million and $71 million, in line with analysts' estimate, with net income of $3 million.
Groupon (GRPN) shares plunged as the company badly missed earnings estimates amidst concerns over the viability of the business. The Chicago-based firm's transitioning itself from a daily deals site, and focusing on its Goods business, which has lower margins. Groupon reported break-even earnings on $568.8 million in revenue. Analysts polled by Thomson Reuters were looking for earnings of 3 cents a share on $590.12 million in revenue. Sales rose 32% year-over-year, but Wall Street was looking for more. Groupon provided fourth-quarter revenue guidance, that at the midpoint, is better than Wall Street is expecting. Analysts expect Groupon will generate $633.87 million in revenue, earning 4 cents a share. Groupon expects revenue to be between $625 million and $675 million. Shares of Groupon were off 29.16% to $2.78 in mid-afternoon trading, after hitting a new 52-week low of $2.73.
Interested in more on Groupon? See TheStreet Ratings' report card for this stock. --Written by Chris Ciaccia in New York >Contact by Email. Follow @Commodity_Bull
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