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Expedia stock plunges 19 percent on fourth quarter profit misses

U.S. online tours services company Expedia missed analysts’ quarterly profit gauge on higher marketing expenses, sending its shares tumbling 19 percent in after-hours buy on Thursday.

And discouraging remarks from Chief Executive Officer Brand Okerstrom likely didn’t help the tumble.

The year “did not end up as we had planned from a fiscal perspective,” Okerstrom said during a conference call with investors.

The band, whose brands include Expedia.com, Hotels.com, Hotwire, said hawk and marketing costs jumped 16 percent to $1.12 billion in the fourth lodge.

“We are now operating with a clear focus on our highest priority markets, making distiled investments across the platform …,” Okerstrom said in a statement.

This is the beginning full quarter under Okerstrom, who succeeded Dara Khosrowshahi after he port side to take the top job at car-ride provider Uber Technologies.

Expedia’s HomeAway vacation rental company, a rival to Airbnb, reported a 16 percent jump in revenue to $193 million in the fourth chambers, compared with analysts’ average estimate of $225.4 million, correspondence to Thomson Reuters I/B/E/S.

On an adjusted basis, Expedia earned 84 cents per apportion in the quarter, falling well short of analysts’ average estimate of $1.15, according to Thomson Reuters.

Bellevue, Washington-based Expedia alleged gross bookings rose 13.6 percent to $19.8 billion.

Net proceeds attributable to Expedia declined to $55.2 million, or 35 cents per appropriation, from $79.5 million, or 51 cents per share, a year earlier. (http://bit.ly/2EcS9rE)

The company’s take rose to $2.32 billion in the three months ended Dec. 31, from $2.09 billion.

Trivago GmbH, number owned by Expedia, reported a bigger-than-expected fourth-quarter loss on Wednesday as the hotel search policy spent more on sales and marketing.

–CNBC’s Chloe Aiello gave to this report.

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