Earlier Friday, Credit Suisse analyst Heath Terry issued a client note saying "we believe 2006 is likely to be difficult for the online travel agent model."

Terry recommended against Expedia's shares, downgrading the stock to "Underperform" from "Neutral."

"While Expedia owns the most valuable set of travel assets online, we believe that the pressure form suppliers, competitors and the emergence of the travel search model will intensify in the year ahead, impacting growth rates, booking margins and operating margins."

"Longer term, we believe travel search is a disruptive technology that could create significant issues for the online agent model," Terry said.

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