Is Priceline a Deal?
George Liu | Jun 11, 2012 02:39PM ET
Priceline (GOOG ) has acquired ITA Software Inc., a major flight information software company along with HomeAway, a vacation home-rental service. Moreover, Priceline is facing increased domestic competition in terms of discounted hotel prices -- Travelocity and Expedia are growing their opaque price-disclosed booking services, which also result in significant discounts for customers. These discounted services may result in more difficulty for Priceline to effectively differentiate its products and services to its domestic costumers.
The Verdict
Recently, Goldman Sachs released its Q1 2012 Hedge Fund Trend Monitor report, which reveals the 50 most important hedge-fund stocks. Priceline was No. 8, with 29 hedge funds including it in their Top 10 holdings, and with good reason. Although Priceline faces increasing competition and may be adversely impacted by the crisis in Europe, it is in an unparalleled position to benefit from international travel. Overall, Priceline has much more upside potential and is a solid investment.
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