Fri, Jun. 24, 3:46 PM
- Priceline (PCLN -12%) has plunged to four-month lows, but Piper Jaffray's Michael Olson sees a buying opportunity in online travel stocks, believing Brexit should not have a significant impact on European travel trends because the move will not have a major impact on consumer confidence.
- Olson thinks the protracted nature of the EU withdrawal process will ease its impact on consumer sentiment in Europe, and the European Central Bank already has implemented stabilization measures that should mitigate Brexit's impact on European consumer confidence.
- The U.K. represents just under 7% of the continent's travel demand, while a large portion of European travel consists of consumers traveling within their own countries, Olson says, adding that about half of PCLN's bookings are made by Europeans.
- Olson keeps Overweight ratings for PCLN, Expedia (EXPE -7%) and TripAdvisor (TRIP -6.1%), with respective price targets of $1,500, $147 and $95.
Wed, Jun. 22, 8:40 AM
- Shares of Priceline (NASDAQ:PCLN) are on watch after a timely upgrade from Barclays arrives.
- The investment firm moves to an Overweight rating from Equal Weight on its view profit margins will expand.
- "PCLN still stands out to us as an inexpensive name relative to structural trends and expected growth. We believe there is a valuation disconnect from concerns that are either timing-related or mostly played out," reads the note from analyst Christopher Merwin.
- PCLN +2.01% premarket to $1370.00.
Wed, Jun. 15, 7:34 AM| Wed, Jun. 15, 7:34 AM | 2 Comments
Mon, Jun. 6, 4:04 PM
- With Kayak, Travelocity, HomeAway, and Orbitz having all been acquired, a Priceline (NASDAQ:PCLN) purchase of TripAdvisor (TRIP +4.9%) could be the online travel industry's next big M&A transaction, argue Bloomberg's Tara Lachapelle and Rani Molla.
- The authors highlight the recent stagnation of Priceline's shares, and the fact TripAdvisor is well off its highs. Some challenges to a deal: TripAdvisor currently sports a $10.4B market cap and has a somewhat lofty valuation (32x a 2017 EPS consensus of $2.26), and TripAdvisor's ties to John Malone's Liberty Interactive (which controls Priceline archrival Expedia) could get in the way.
- Though still down 17% YTD, TripAdvisor rallied to its highest levels since January today. Volume (3.05M shares) was well above a 3-month daily average of 2.16M.
Fri, Jun. 3, 7:23 PM
- Paul Hennessy, the CEO of Priceline's (NASDAQ:PCLN) Priceline.com unit since last year, has resigned to "pursue an e-commerce opportunity outside of the travel space." Brett Keller, most recently Priceline.com's COO and before that its marketing chief, has been named interim CEO of the unit.
- Hennessy's departure follows the resignation of Darren Huston, who had been both CEO of Priceline overall and of its Booking.com unit (easily the company's biggest revenue-generator), due to a relationship with an employee. Former Priceline CEO Jeff Boyd is serving as interim CEO, and former Booking.com COO Gillian Tans has been named Booking.com's CEO.
Mon, May 23, 12:39 PM
- "Politics is now a topic in every client discussion," say David Kostin and team, and the nature of today's electorate nearly assures a close race, even though prediction markets currently assign a high probability of a Clinton victory.
- When uncertainty rises, consumer staples (NYSEARCA:XLP) typically outperforms, while tech (NYSEARCA:XLK) lags.
- Getting down to names, with protectionism and tax policy two key areas of debate, buy those stocks with high U.S. sales and high effective tax rates, and avoid those with high foreign sales and low tax rates.
- High U.S. sales and high tax rates (buy): Cardinal Health (NYSE:CAH), Fidelity National (NYSE:FIS), Discover (NYSE:DFS), AmerisourceBergen (NYSE:ABC), Schwab (NYSE:SCHW), ADP (NASDAQ:ADP), Chipotle (NYSE:CMG), Reynolds America (NYSE:RAI), Express Scripts (NASDAQ:ESRX), Alliance Data (NYSE:ADS), Fiserv (NASDAQ:FISV), Paychex (NASDAQ:PAYX), Whole Foods (NASDAQ:WFM), Akamai (NASDAQ:AKAM), Intuit (NASDAQ:INTU), Southwest Airlines (NYSE:LUV).
- High foreign sales and low tax rates (avoid): Abbott Labs (NYSE:ABT), Agilent (NYSE:A), Mondelez (NASDAQ:MDLZ), XL Group (NYSE:XL), Waters (NYSE:WAT), Priceline (NASDAQ:PCLN), Transocean (NYSE:RIG), PerkinElmer (NYSE:PKI), Nvidia (NASDAQ:NVDA), Lam Research (NASDAQ:LRCX), Western Digital (NASDAQ:WDC).
Wed, May 11, 12:28 PM
- "The mall is not dead, it has just moved online," asserts EQM Indexes CEO and SA contributor Jane Edmondson. Though her analysis is not entirely new, it's certainly well-timed amid a battering of mall-based chains this week (see reports on L Brands, Gap, and Macy's for some of the carnage details).
- EQM licensed its online retail index to ETF provider Amplify Investment for use in the new Amplify Online Retail ETF (NASDAQ:IBUY).
- The online retail ETF lists Copart (NASDAQ:CPRT), NutriSystem (NASDAQ:NTRI), PetMed Express (NASDAQ:PETS), Shutterfly (NASDAQ:SFLY), Amazon (of course), PayPal (NASDAQ:PYPL), Stamps.com (NASDAQ:STMP), Grubhub (NYSE:GRUB), Overstock.com (NASDAQ:OSTK), FTD Companies (NASDAQ:FTD), Wayfair (NYSE:W), Netflix (NASDAQ:NFLX), Priceline (NASDAQ:PCLN), and Lands End (NASDAQ:LE) as top holdings.
- The fund has only traded for a few weeks, but could catch some attention with the ground shifting underneath traditional retail.
- Earlier today, the Global Millennials Thematic ETF (NASDAQ:MILN) was highlighted. This ETF shares some of the same holdings as the online retail play and has Amazon as its top holding.
- Complete list of Amplify Online Retail ETF holdings
- Previously: Amazon rambles to all-time high amid retail chaos (May 11)
Wed, May 4, 9:10 AM
Wed, May 4, 7:45 AM
- Priceline (NASDAQ:PCLN) reports profit jumped 21% in Q1 to $2B with international operations accounting for the bulk of the gain. The company ended the period with a gross profit rate of 20.8% vs. 18.9% a year ago.
- Total gross bookings were up 20.9% to $16.653B (+26% ex-F/X). Hotel room units sold showed the biggest increase in the quarter with a 31% Y/Y pop.
- Priceline says it will target total gross travel bookings growth of 11% to 18% in Q2. Revenue is seen growing 7% to 14%. The outlook on EPS for a $11.60 to $12.50 range falls short of consensus estimates.
- Previously: Priceline beats by $0.88, beats on revenue (May 4)
- PCLN -11.82% premarket to $1195.06.
Wed, May 4, 7:24 AM
Tue, May 3, 5:30 PM
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Thu, Apr. 28, 9:11 AM
- Priceline (NASDAQ:PCLN) comes off its trading halt with a mild 1.2% dip after announcing the resignation of CEO Darren Huston. A board investigation determined that Huston had a personal relationship with an employee not under his direct supervision.
- The company appoints former CEO Jeffrey Boyd to return to the position on an interim basis while it looks for a replacement.
- Another C-suite move from Priceline is the promotion of Booking.com COO Gillian Tans to be the CEO of that business unit.
- Priceline is due to report earnings on May 4.
Thu, Apr. 28, 8:07 AM
Thu, Apr. 28, 8:00 AM
Wed, Apr. 13, 10:39 AM
- The travel sector will face some near-term challenges as companies expand into Cuba, according to analysis from Moody's.
- Cruise line operators (CCL, RCL, NCLH) face limited port infrastructure in Cuba which will limit growth. Larger ship trips are unlikely until considerable construction is taken up.
- Hotel chains (MAR, HOT) looking to bring well-known brands to the island also infrastructure issues. Government-controlled employee compensation is also in the mix.
- Priceline (NASDAQ:PCLN) appears to be in a better position to benefit from travel to Cuba with its simpler business model.
Tue, Apr. 12, 1:37 AM
- A Cowen survey of 1,400 U.S. travelers found 44% of those who were Airbnb (Private:AIRB) users were very likely to recommend the service, and that another 38% were likely to recommend it. Airbnb users were also “9X as likely to be more satisfied by their average Airbnb stay vs. their average hotel stay for leisure travel.”
- However, 99% of Airbnb users also used hotels in the prior year, and were “heavier users of hotels (at 10 leisure hotel nights per customer) than the average hotel customer in [Cowen’s] survey (at 7 leisure hotel nights per customer).” Altogether, hotels still accounted for 69% of Airbnb users' total paid travel nights.
- Moreover, online hotel bookings leaders Priceline (NASDAQ:PCLN) and Expedia (NASDAQ:EXPE) have been investing in their own home/apartment rental offerings. Vacation rentals now account for an estimated 46% of the listings on Priceline’s Booking.com - most of the listings are in Europe - and Expedia recently bought leading vacation rental marketplace HomeAway for $3.9B. Cowen estimates vacation rentals now account for 15% of Priceline’s room bookings.
- Now read Priceline And Expedia Face The Might Of Airbnb
The Priceline Group, Inc. is an online travel company, which provides travel and related services. It offers accommodation reservations including hotels, bed and breakfasts, hostels, apartments, vacation rentals and other properties. The company provides services through Booking.com,... More
Industry: General Entertainment
Country: United States
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