Unfortunately for its shareholders the Webjet Limited (ASX: WEB) share price hasn't been able to follow the market higher today.
In afternoon trade the online travel agent's shares are down 3% to $11.37.
What happened?
With no news out of the company or broker notes related to it, today's decline is likely to be related to the quarterly results of two global online travel giants.
Priceline saw its share price plunge over 13% overnight after the release of its second-quarter results.
Although the US$93 billion behemoth beat on both the top and bottom lines, investors headed to the exits due to its weaker-than-expected guidance.
Elsewhere, TripAdvisor also reported its third-quarter results. Unlike Priceline, it missed on the top line due to weakness in hotels bookings. Its shares ended the day over 23% lower as a result.
Investors appear to be interpreting this as a sign that Webjet could also be underperforming. Which considering the growth that is built into its share price currently, will undoubtedly be making many shareholders nervous ahead of its annual general meeting on November 22.
The shares of fellow travel agents Flight Centre Travel Group Ltd (ASX: FLT) and Corporate Travel Management Ltd (ASX: CTD) are also lower today.
Should you buy the dip?
I would suggest investors stay clear of Webjet until it updates the market on its performance at its AGM. Until then I think its shares carry too much risk.
