Conversely, travel services competitor Expedia posted numbers that Olson said “looked really strong.” In its latest earnings report, the company topped analysts’ earnings and revenue expectations.
Priceline is not the only travel services company to disappoint Wall Street recently. On Wednesday, Orbitz Worldwide reported earnings that did not meet analysts’ forecasts.
This is a “sign that Priceline is not alone here,” Olson said.
But despite weakness in Europe, Olson still has a 12-month price target of $675 on Priceline’s stock.
“Even with a material reduction in our expectations around international and Europe specifically, they’re still outpacing the growth of any of their closest competitors by two to one,” Olson said.
—By Jane Burnett, Special to CNBC.com
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Michael Olson does not own Priceline. Piper Jaffray research analysts receive compensation that is based, in part, on overall firm revenues, which include investment banking revenues.