Shares of Expedia (EXPE) - Get Report are under pressure Friday, down roughly 3% after the company beat on earnings per share estimates, but missed on revenue expectations.

"They did two things wrong this quarter, but only one was their fault," TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said on CNBC's "Mad Dash" segment. 

While the company struggled with integrating some of its new acquisitions, the acts of terror plaguing Europe have created a drag on the business, Cramer said.

There was a "dramatic decline" in European tourism, he said, adding that in the past there was just a "blip" in tourism when something like this happened. But after repeated attacks, it seems tourism could remain under pressure on the continent.

"That's very important," Cramer explained. While Expedia is a "great company," the pressure it's seeing in Europe is something investors need to realize could persist going forward.

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At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.