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Priceline Whipsaws in After-Hours

|Includes:EXPE, OWW, The Priceline Group Inc. (PCLN), TZOO

Shares of Priceline (NASDAQ:PCLN) had a wild ride in after-hours after the company reported its latest quarterly results. Revenues of $1.5 billion and net bookings of $6.3 billion were well ahead of expectations. EPS (Non-GAAP) was $9.95, compared to $9.17 for GAAP EPS, while expectations called for $9.30.

Guidance seemed a bit low, but the company's guidance has been rather conservative the past few quarters which has allowed big beats.

Priceline initially dropped to $475 in the after hours after closing at $509. But it then rebounded to $500, and as after hours gets ready to end, it is now above $520. In my Priceline earnings preview, I predicted a 4 to 7% gain on Tuesday, and that seems possible giving the after hours action.

Priceline still is rather expensive when compared to Expedia (NASDAQ:EXPE), and Orbitz has had a 50% plus run up in the past week, after its earnings. Travelzoo (NASDAQ:TZOO) has also had problems over the past year.