Travelzoo Trips

Travelzoo (TZOO Quote - Cramer on TZOO - Stock Picks) got trampled Wednesday, falling 23% on weaker-than-expected first-quarter earnings.

The New York-based online publisher made $4.1 million, or 25 cents a share, for the quarter ended March 31, compared with the year-ago $4.1 million, or 24 cents a share. Revenue rose to $19.7 million from $16.4 million a year earlier.

Analysts surveyed by Thomson Financial were looking for a profit of 32 cents a share on sales of $20.4 million.

"In [the first quarter], we decided to invest a record $6.7 million in subscriber acquisition and in marketing the Travelzoo brand," said CEO Ralph Bartel. "We added four senior executives in North America, Europe and Asia. We believe that this positions Travelzoo well to capture the growth opportunities we see ahead for the future."

Shares fell $8.52 to $28.36.