Topic: How To Invest

What do you think of TripAdvisor and Priceline as investments? Thanks.

Article Excerpt

TripAdvisor, $81.10, symbol TRIP on Nasdaq (Shares outstanding: 129.3 million; Market cap: $11.6 billion; www.tripadvisor.com), is the world’s largest online travel company, providing reviews and opinions about destinations, accommodations, restaurants and activities. The company’s websites include tripadvisor.com in the U.S., as well as adapted versions in 29 other countries. It also operates 18 other websites, including whereivebeen.com and everytrail.com. TripAdvisor continues to enjoy increasing traffic to its websites, which is pushing up its click-based advertising revenue. The company should also see considerable growth as more users access its sites through smartphones and tablets. The online travel market’s outlook is also positive, although it’s competitive and requires steady marketing spending and hiring to keep quality high. The stock has jumped 98% in the past year. It now trades at a high 42 times next year’s forecast earnings of $1.95 a share. TripAdvisor is okay to hold, but only for aggressive investors. A: Priceline, $1,171.65, symbol PCLN on Nasdaq (Shares outstanding: 51.4 million; Market…