Priceline Travels Skyward
Travel reservation website Priceline.com released earnings, and profits were up 24%. The company showed increased bookings, and strength both in Asia and Europe. While competitor Orbitz also jumped up yesterday on dramatically better-than-expected earnings, Orbitz is only a fraction of the market cap of Priceline, which is far and away the big dog in the industry.
In this video, Motley Fool analyst Ron Gross talks with host Chris Hill about Priceline, and where the company should go from here. Ron looks at the idea of Priceline acquiring smaller competitors such as Orbitz, but thinks the company would be better served by just continuing to execute as it has been.
With Priceline's stock approaching $1,000 per share, many investors get sticker shock, but Ron reminds investors not to focus on price per share, but to keep valuation in mind, instead. He notes that, at 25 times earnings, the company isn't nearly as pricey as many think, and tells investors that in his opinion, the company is doing very well.
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The article Priceline Travels Skyward originally appeared on Fool.com.Chris Hill has no position in any stocks mentioned. Ron Gross has no position in any stocks mentioned. The Motley Fool recommends Priceline.com. The Motley Fool owns shares of Priceline.com. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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