Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
So what: Slowing revenue growth, coupled with rapidly rising expenses, is forcing Wall Street analysts to lower their price targets on Ctrip yet again. In fact, the stock is flirting with 52-week lows on today's news and is down more than 40% over the past six months.
Now what: For the current quarter, management sees year-over-year revenue growth of 15%-20%, in line with its previous forecast. "In 2012, Ctrip will invest further to enhance the competitive edge of each business line in order to offer the best product with the best service at the best price," said CEO Min Fan. "Ctrip will work tirelessly to strengthen our leadership of the travel industry and rise far beyond the competition." However, given Ctrip's worrisome margin trend, U.S. counterparts like priceline and Travelzoo might actually be better bets at this point.
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