Expedia Inc’s stock (EXPE) was pummelled earlier today by 4% in early US exchange trading.
The selloff was in response to a report that the flagship site, Expedia.com, may have lost as much as a quarter of its visibility in search results due to a Google penalty for unsavory link practices.
But the market may be over-reacting. Expedia Inc’s results may be hurt from the traffic loss by less than 1%, says one leading analyst.
Search Metrics is claiming — according to a report in Search Engine Land – that Google punished Expedia for allegedly participating in “paid linking schemes” to manipulate its ranking in Google organic search results for most of their generic keywords.
READ THE ORIGINAL ARTICLE: Markets slam Expedia over a reported Google penalty, but revenue impact may be tiny – Tnooz.