With a market cap of about $61 billion, Priceline Group is the world’s most valued travel company, surpassing Las Vegas Sands’ market cap of $59.85 billion.
Despite that, the company’s stock has been down about 15 percent over the last month, and no one really knows why. What are the big growth opportunities left for the company going ahead? The analysts at investment bank Piper Jaffray took a crack — in an analyst briefing to clients yesterday — at why they think there is still a lot of runway to grow for the company. And it all boils down to one word: global.
It sees two major global trends in online travel, and says that Priceline is set up well for them: 1) the increasing penetration of online bookings internationally, and 2) the shift of travel ad dollars to online. 85% of Priceline bookings are international (outside of U.S.) and its Kayak acquisition provides exposure to online ad growth.