Expedia Inc (NASDAQ:EXPE) stock is struggling today, down 16.8% to trade at $102.39 -- fresh off an annual low of $102.06 and on track for its worst day since July 2013. The freefall comes after the company reported fourth-quarter earnings and revenue below analyst forecasts. Expedia also gave a disappointing 2018 forecast -- citing marketing costs that would outpace revenue growth -- and several analysts have chimed in on the travel stock as a result.
For instance, Benchmark downgraded Expedia stock to "hold" from "buy," while no fewer than 13 brokerages cut their respective price targets. Included in the bunch was one to $112 from $140 at Stifel. More bearish brokerage notes could be on the horizon, too, considering 17 of 22 brokerages rated EXPE a "buy" or better at last night's close, while the average 12 month price-target of $140.52 is a 37% premium from the stock's current perch.
Although EXPE stock is currently short-sale restricted, short sellers are likely cheering today's collapse. Short interest increased by nearly 11% during the last reporting period, and represents a roughly 10.6% of EXPE's total available float.
Despite Expedia's history of negative earnings reactions, options traders appeared to be optimistic in recent weeks. Data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows the stock's 50-day call/put volume ratio of 1.68 ranks in the 92nd percentile of its annual range. This suggests that calls have been bought to open relative to puts at a faster-than-usual clip during the past 10 weeks.