Online travel names head south in response to Priceline's soft Q3 guidance. EXPE -3.2% AH. TRIP...

Online travel names head south in response to Priceline's soft Q3 guidance. EXPE -3.2% AH. TRIP -6.3%. Of particular concern is Priceline's guidance for a 12%-20% Y/Y increase in international gross bookings (heavily tied to Europe), which is well below Q2's 33%, not to mention Q1's 54%. Also, guidance for Q3 revenue growth of 9%-15% isn't close to a 24% consensus. OWW and TZOO could also be under pressure tomorrow. PCLN -15.4% AH. The CC has started (webcast).

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Comments (3)
  • Hitesh Patel
    , contributor
    Comments (314) | Send Message
    Almost down a $100 in after hours. I guess the Travel business is slowing. Perhaps people are putting off vacations since they have no money or are afraid of losing thier job while they are gone
    7 Aug 2012, 05:11 PM Reply Like
  • remurraymd
    , contributor
    Comments (2274) | Send Message
    We sold 50% into the close profitably hedged 100% with weekly puts.
    So we had no loss we were afraid (PCLN) might do this.Our rule of thumb 2 misses in a momentum stock in a row we will close our position stay away till the dust settles.Bet we will not be alone.
    7 Aug 2012, 06:27 PM Reply Like
  • mjk0259
    , contributor
    Comments (983) | Send Message
    "PCLN) is the pick of the litter if you do forward PE/PEG/ARG calculations and backtesting/comparison graphing over 5-10 years it CRUSHES Expedia in its sector.We are long and have used them for travel for decades the "name your own price" model gets us best value hotels everywhere recently Marriott Paris CDG 40 euro a nice suite.The recent additions of and will be exponentially revenue accumulative. Expedia was $150 for the same room a fee based model that is unworkable over time.Expedia spun off pump and dumped the Tripadvisor IPO out recently making them even less valuable. We will stick with Priceline growing twice as fast still buying big pullbacks. Eurosis knocked them back a little last quarter was a great buying op for us. We let our winners run sell only fundamental failure. We are racing Priceline and Apple to $1000 in our folios really do not care who wins as long as fundamentals remain sound. APD "
    remurraymd 5/12
    7 Aug 2012, 06:47 PM Reply Like
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