Vacation rental website HomeAway reported 20.9 percent year-over-year revenue growth Thursday and also beat analysts’ earnings expectations, only to see the company’s share price plunge 7 percent in trading Friday as investors expecting stronger growth bailed, Investor’s Business Daily reports.
Listings were up 10 percent to 775,232, but one analyst who’s bullish on the stock said the company was hoping for stronger growth. HomeAway is launching a new listing format that will let users pay after their property is booked instead of upfront, which may help the company deliver on those growth expectations.
With a market capitalization of $2.65 billion, HomeAway is more highly valued by investors than Zillow ($2.6 billion), Trulia ($1.19 billion ) or realtor.com ($562 million). Source: investors.com.