With a market value of more than $60 billion, Priceline Group (ticker: PCLN) dwarfs its competitors and has turned its size and technical savvy into a growth engine that dominates the industry. Much more than just a middleman, Priceline’s business model has allowed it to grow and take share in the fragmented hotel industry worldwide.
When did Priceline stock go up?
It showed some signs of escaping in 2007 and early 2008, only to be knocked down again by the financial crisis. Then, beginning in 2009, Priceline quietly and steadily soared back, reaching its all-time high on Friday.
Should you invest in Priceline or General Motors?
Imagine this, if you had invested $10,000 in Priceline on October 9, 2002, and held on through the 2008 decline, you'd have about $1.47 million today. On the other hand, if you had invested $10,000 in a seemingly safe bet, General Motors ( GM ), you would have exactly $0 today. Remember the saying "as GM goes -- so goes America?"
Is Priceline the 87th most valuable company in the US?
Priceline ( PCLN) shares traded near an all-time high at $969.89 Friday, making it the 87th most valuable company based in the U.S, according to Wilshire Associates. Here is a brief history of this unlikely story and how it can make you a better investor.
Is Priceline still in the black hole?
But Priceline had a couple of things most dot comers didn't have -- revenue and a small profit. Nevertheless, Priceline remained in the black hole for many years. It showed some signs of escaping in 2007 and early 2008, only to be knocked down again by the financial crisis.
Is Priceline a good stock to buy?
Priceline has been a good investment over the past 5 years outperforming the S&P 500 in every year except 2014. Before shares tumbled 13% last week, it was up almost 30% year-to-date compared to about 17% for the S&P 500.
What is Priceline's competitive advantage?
Priceline's Business Model This is a revenue source was a competitive advantage because it allowed the firm to differentiate in front of consumers and to charge an attractive fee to providers by acting as merchant when choosing the provider for consumers instead of having consumers choose themselves.
Is Priceline profitable?
Courtesy of The Priceline Group Inc. The online travel company owns travel booking sites Priceline.com, Kayak, Booking.com, Agoda, Rentalcars.com, and restaurant booking service OpenTable, which it acquired in 2014 for $2.6 billion....Profit Ratios.Profit as % of Revenues27.7%Profits as % of Stockholder Equity29%1 more row
Is booking holdings a good stock?
Booking Holdings Inc. We therefore hold a negative evaluation of this stock. Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this stock since the last evaluation from a Sell to a Strong Sell candidate.
What kind of business is Priceline?
online travel agencyPriceline.com is an online travel agency for finding discount rates for travel-related purchases such as airline tickets and hotel stays. The company facilitates the provision of travel services from its suppliers to its clients.
Why do you think airlines partnered with Priceline com?
Airlines were willing to participate in Priceline.com 's program, because they felt that Priceline.com was offering tickets that otherwise would have gone unsold. The airlines did not perceive the Priceline.com model to be a threat to the published fare system, but rather as a complement to it.
How much money did William Shatner make from Priceline?
It's an “urban legend” that Priceline.com pitchman William Shatner made as much as $600 million from receiving stock in the company, said Jeffery Boyd, chairman and CEO of the online travel website.
What company owns Priceline?
Booking Holdings Inc.Priceline.com / Parent organizationBooking Holdings Inc. is an American travel technology company organized in Delaware and based in Norwalk, Connecticut, that owns and operates several travel fare aggregators and travel fare metasearch ... Wikipedia
Does Expedia own Priceline?
became Expedia Group. The switch came a month after the Priceline Group rebranded to Booking Holdings. Expedia Group is the number two global online travel player, behind Booking Holdings, and booked $10 billion in revenue in 2017. Below, Skift presents an explainer about Expedia Group's brand portfolio.
Is BKNG a buy or sell?
Booking has received a consensus rating of Buy. The company's average rating score is 2.79, and is based on 20 buy ratings, 7 hold ratings, and no sell ratings.
Is booking com listed?
Booking.com and its parent company, Booking Holdings, have been listed on the database in light of their involvement in activities related to "the provision of services and utilities supporting the maintenance and existence of settlements".
How much is Priceline worth?
The company is worth about $75 billion. To put that in perspective, it's three times as valuable as leading airline Southwest ( LUV) and nearly five times higher than the market value of Marriott ( MAR). Priceline is worth more than twice as much as buzzy unicorn Airbnb too, and its market value is four times higher than rival Expedia ( EXPE).
Is Priceline a TV commercial?
William Shatner's Priceline Negotiator character is no longer a star of the company's TV commercials either.
Does Priceline own Booking.com?
Priceline now owns six big travel and leisure related online brands. There's the namesake site of course. But it also owns Booking.com, which is huge in Europe and expanding aggressively in the U.S., hotel reservations site Agoda, travel search engine Kayak, restaurant reservation service OpenTable and Rentalcars.com.
The online travel and accommodations leader posted more solid numbers
After reporting fiscal 2016 financial results back in February, Priceline Group 's ( BKNG -0.29% ) stock began to rise and continued mostly up until first-quarter results were reported on May 9. The stock dropped right after that report, though then began to rise again and now sits near its high around $1,900.
What the Q1 report showed
Priceline and its stable of businesses notched yet another quarter of double-digit year-over-year growth in the most recent quarter. Booking travel via the internet is not new, but the world is still transitioning to that model. That switch is obviously the primary tailwind filling the travel group's sails and propelling the business higher.
The game plan headed into the busy season
International growth has been a strong point for Priceline, so the company sees no need to change that game plan up. About $2 billion in gross profit came from overseas in the first quarter, a 17% increase over last year, versus $315 million stateside (representing 6% growth).
Time to go shopping
With not much changing in the way of expectations and business plan, the latest dip in Priceline stock looks like a normal swing in price rather than something to worry about. However, the company's price-to-earnings ratio is steep at nearly 42, and is near the upper end of where it has historically been valued.
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How much did Priceline stock fall in 2002?
By October 9, 2002, however, the mighty had fallen. In the aftermath of 9/11, Priceline's stock fell from nearly $1,000 to only $6.60 a share, while its market value shrunk from $24.1 billion to $0.25 billion. In fact, 9/11 hurt Internet travel companies far more than any sector.
How much was Priceline's net income in 2013?
Priceline's net income in the second quarter of 2013 alone was $437 million, about 1.75 times the total company valuation at its low in 2002. William Shatner knew a good thing when he saw it, reportedly taking all of his acting fees as stock, rather than cash (although he did lament on Friday selling shares long ago).
When did Priceline go public?
Timing was good for Priceline: it went public on March 31, 1999, during the height of the dot-com boom, at an equivalent price of $96 a share ...
Was Priceline in the black hole?
But Priceline had a couple of things most dot comers didn 't have -- revenue and a small profit. Nevertheless, Priceline remained in the black hole for many years. It showed some signs of escaping in 2007 and early 2008, only to be knocked down again by the financial crisis. Then, beginning in 2009, Priceline quietly and steadily soared back, ...
Who is Priceline associated with?
F or those of us in the United States, Priceline Group has long been associated with William Shatner and his "Name Your Price" promo. But it's so much more than that. The 2005 acquisition of Booking.com gave Priceline access to what has become one of the largest hotel booking websites in Europe and the rest of the world.
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