Pcln has a PE of over 31 with big jump today , but i'm asking
WHY? the headlines say they're in a race with Goog to 1000 / That is the reason for the 18pt pop today? Goog which I consider a great co. should already be there and pcln should be trading much, much lower. pcln has climbed 80Pts in a weeks time on an upgrade from Morga Stanley that was obviously leaked to all their clients before their before the bell announcement.
First, PCLN has a much lower float, so it moves differently. Also, PCLN is growing faster than GOOG
MS guy made an argument that PCLN should be viewed as amzn, aapl, berkshire rolled into one. Basically, my impression, is he was calling for it to be etched into the virtual mount rushmore of the most solid and dominant growth stocks, which includes GOOg. . He thinks it deserves a higher multiple, PE expansion. His survey showed that despite Expedia's new platform offering, pcln is showing continued growth, unabated domination. When global econ improves, they will benefit greatly.
So that sets the stage for psychological momentum, and technically, pcln broke out on huge volume that day. But it's a late stage base, which is not a solid play. Still, if you were feeling it, and I was, you may have thought pcln would beat goog to 1000, however fleetingly, and played the breakout.
I turned on a dime this afternoon and decided it would be Goog instead, & got in as it tested all-time highs :) So, I'm looking for a break-out tomorrow, a pre-earnings momentum run. Not the type of trading to encourage in others, obviously, but I'm good with risk management. I'm using a portion of profits on this one. Small $.