Travelzoo

(TZOO) - Get Report

, last year's Wall Street darling, is fast becoming this year's ugly duckling.

The stock, which rose over 1,000% last year and briefly traded around $100 a share, has been cut in half in 2005. The selling in shares of the online travel publishing Web site is likely to continue Tuesday following a disappointing first-quarter earnings report.

In the quarter, Travelzoo earned $1.8 million, or 10 cents a share, up from $1 million, or 5 cents a share, a year ago. But earnings fell 3 cents shy of the consensus estimate of the handful of analysts who follow the company, according to Thomson Financial.

In premarket trading, shares of Travelzoo, which closed Monday at $46.30, were trading 18% lower.

The New York-based company continues to pay out big bucks to compensate some 5 million stockholders who got free shares of Travelzoo during a 1988 promotional campaign. In the quarter, Travelzoo paid out $984,000 to those stockholders. In the fourth quarter of 2004, the company shelled out $977,000 to holders of those free shares.

The company, in an earnings release, did not provide any estimate on the number of claims from stockholders that are still pending under the compensation program. The company treated the payments to shareholders as a one-time charge.

It wasn't all bad news for Travelzoo, however. Revenue, all of which comes from advertising spots purchased by travel companies on the Travelzoo site, rose 74% to $11 million.