After reporting an earnings season 'triple play' (better than expected EPS and revenues and raised guidance) yesterday, shares of Priceline.com (NASDAQ:PCLN) are trading up 20% and at a new 52-week high. After a spring where the stock declined by nearly 40%, to say PCLN's rebound is impressive would be an understatement. While PCLN is generally thought of as a US company, it does generate nearly 40% of its revenues from Europe. With this in mind, a look back at the last four months shows that investors may have overestimated, or even misinterpreted, the impact of the Iceland volcanoes this spring. When the company reported earnings in May, they lowered guidance, citing impact of the Iceland volcanoes, and the stock was sold off accordingly. However, with the volcanoes now well in the rearview mirror and economic data in Europe showing signs of rebounding, one has to ask how closely related the volcanoes were to the downtick in the European economies over the last few months.
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