Why We Love Priceline Stock

Priceline Group

Priceline Stock: A Top Stock In OTA

After the initial disappointments from the online travel industry Priceline and Orbitz stocks delighted the investors. Priceline (NASDAQ:PCLN), one of our top stock picks came out with its results last evening after market close. These are the kind of numbers that make us love Priceline stock. A revenue increase of 27% YoY accompanied by an earnings jump of 22% YoY re-affirms our conviction that the Priceline stock is a great stock to have in ones portfolio. It is becoming a habit for Priceline to beat the analysts’ estimates, and this quarter was no exception. The Priceline stock price jumped over 6% in after-market hours following the results announcement. The stock is already up over 10% or close to $90 since we last covered the stock on July 29th 2013. A 10% return over 10 days at a time when competitors like Expedia (NASDAQ:EXPE) were busy painting a gloomy picture of the online travel industry. Sounds like a fairy tale? Do check our top stock picks to see that it ain’t no fairy tale but real returns that drives our stock selection!
Priceline Vs Expedia
Source: Priceline Vs Expedia by Amigobulls

Orbitz Worldwide Stock: Another Winner Among Online Travel Stocks

Orbitz Worldwide (NYSE:OWW) came out with its June 2013 ending quarterly results yesterday before markets opened. The company registered a revenue growth of 12% YoY and saw its operating margins improve by 3%. Though the company failed to beat analysts’ earnings estimates the market response of a 36.7% increase suggests that the investors value the growth of the company at this stage. Couple that with improving margins and this is one stock we will be keeping a close watch on to let investors know of any opportunities that might open up in future.
Orbitz revenue chart
Source: Orbitz revenue chart by Amigobulls

Rackspace Stock Touches 2 Week Low Post Earnings

Rackspace Hosting (NYSE:RAX), a company that offers a host of cloud computing services to business enterprises, posted a ‘not so profitable’ second quarter results although revenues witnessed an increase of 18% YoY. However, the million dollar question is whether the marginal increase in Rackspace’s cash flows would be able to offset its capital expenditure of $107 million and other R&D expenses in the mid-term? Prior to earnings release, the company’s stock price touched its 2-week low; and after trading hours state a probable upside of 11.7%. We hold a pessimistic view on Rackspace given its high P/E valuation and declining profitability.

Cogent Communications Stock: Not One To Be Ignored!

On a day dominated by the travel industry, Cogent Communications (NASDAQ:CCOI), an internet services provider, announced a quarterly performance which the market couldn't ignore. A 10% YoY increase in Cogent Communications revenue and a 3% improvement in operating margins is definitely a plus for the company. However to justify the current PE ratio of 1080, earnings will have to travel a long way to the north and currently this is one stock which we will be following closely in the coming quarters. The stock market seemed very positive with Cogent Communications stock jumping over 12% during regular market hours in response to the morning earnings call.

Boingo Wireless Stock Beats Analyst Estimates

Boingo Wireless (NASDAQ:WIFI), claiming to operate over 700,000 WI-FI hotspots, reported earnings for Q2 2013 last evening after market close. The highlight of the quarter was a revenue growth of 8% Y/Y. Although all the other important metrics took a slide to the south, the market expectations were clear with Boingo Wireless stock moving up 6.8% in regular market hours before the earnings announcement. Although the company did beat analyst estimates for revenues as well as earnings, earnings of 1 cents loss per share is a huge dip from the 4 cents per share profit in the year ago period. Though the beat surprise will result in a short term increase in the Boingo Wireless stock price, in the long term we don’t see the stock as one we would like to bet our money on.

Keep following us and stay updated with any changes to our top 5 stock picks and also to our positive watch-list.

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Neither Amigobulls, nor any members of its staff hold positions in any of the stocks discussed in this post. The author may not be a certified/registered investment advisor, and the opinions expressed should not be treated as investment advice. Buying and selling of securities carries the risk of monetary losses. Readers/Viewers are advised to carry out their own due diligence and consult their investment advisors before making any investment decisions. Neither Amigobulls, nor the author have any business relationship with any of the companies covered in this post.

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Comments on this article and RAX stock

Priceline is a great company. They are much better than the bigger rivals Expedia & others. I think it is a good long term bet.
Do share this awesome post