Shares of name-your-price retailer Priceline.com (Nasdaq: PCLN) fell hard on Wednesday, dropping 4-9/16 to 63-1/4 after Microsoft (Nasdaq: MSFT) announced the launch of a similar service for customers looking for hotel rooms. Microsoft’s Expedia travel site will now allow customers to name their price for hotel rooms. Shares of Microsoft closed down 2 to 92 on Wednesday, but, as usual, it’s hard to pin the movement of Microsoft’s stock to any one event.
What Priceline.com has to be concerned about is the possibility of Microsoft adding similar services for other accommodations and products. Microsoft obviously isn’t a company Priceline.com can bully with lawsuits.
This could get interesting.