Expedia Shares Tumble on Plans to Increase Spending This Year
- Profit fell 30 percent in fourth quarter from a year earlier
- HomeAway unit is competing against Airbnb, other startups
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Expedia Inc. shares tumbled the most in more than three months after outlining plans to spend a lot more in 2018, in an effort to modernize operations and bolster its short-term vacation rental unit.
The company gave a forecast Thursday for 6 percent to 11 percent annual growth in earnings before interest, taxes, depreciation and amortization -- a measure of profitability. That indicated a maximum of $1.9 billion, falling short of the average analyst estimate of $1.94 billion. All that Ebitda growth will come in the second half of 2018, executives said, which implies heavy spending in the first half.