Priceline.com is Priced Out

Shares of Priceline.com (Nasdaq: PCLN) are up some 60%
from $480 in January. What’s more astounding is that since the rally
started, the stock has not declined for more than two consecutive
sessions. That’s nearly three months without a 3-day decline.

Priceline.com is worth $37 billion, which is way above most stocks in the
general entertainment industry (average $1.5 billion). The company is
also nine times larger than its nearest competitor: Expedia
(Nasdaq: EXPE) at $4.4 billion.

Though the success of Priceline.com is hard to argue, it’s still tough to
justify a value that much larger than its competition. Further,
Priceline.com carries a P/E ratio of 36 and trades at eight times sales
compared to the industry averages of 34 and 2.5, respectively.

The stock’s rally has been nothing but spectacular this year, but it may
be coming to an end. Today’s video focuses on the recent run-up and
analyzes potential near-term upside for the stock. Additionally, the
video will discuss when to expect a pullback and where such a decline
could take PCLN stock.