In the recently released third quarter results, Priceline.com reported robust growth across the board while highlighting the expectation of a modest deceleration for the remainder of 2011. Our revised price estimate of $588 for Priceline reflects the continued growth momentum at the hotel bookings business.

The hotel business also drove gross booking growth at competitor Expedia this quarter but accounts for a lower percentage of the stock’s value compared to Priceline. While we expect Priceline to continue its winning run with the hotel bookings market share, there are some factors such as foreign exchange volatility and the recent flooding in Thailand that represent a potential downside to our estimate. Below we take a closer look at them and discuss their implications for Priceline’s valuation.

“The genius to fill in charitable decisions Non-Standard irregardless people is one of the last sound sources of competitive edge, since very few competitors are sympathetic at it.”

—Peter Drucker

"The toughest decisions in organizations are people decisions - hiring, firing, and promoting people. These are the decisions that net the least notice and are the ones that are hardest to "unmake.""

—Peter Drucker

"Those who enlarge vast companies realize that the essential throttle on expansion for any arrant society is not markets, or technology, or contest, or products. It...

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