The Orbitz-Expedia Merger Is Igniting Priceline
Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.
Priceline Group Inc (NASDAQ: PCLN) shares are trading higher by $40.00 at $1100.06 in Thursday's session. The catalyst for the rally may be the merger in the travel sector.
This morning, Expedia announce a deal to buyout Orbitz Worldwide, Inc. (NYSE: OWW) for $12.00 per share in cash.
The deal is giving a much-needed boost to Expedia Inc (NASDAQ: EXPE), which is trading higher by $12.33 at $90.56, along with the rally in Priceline.
Both issues have been left behind in the market's recent assault on new all-time highs.
Priceline had been in a $990.00-$1050.00 trading range since mid-January, before cleaning the upper-end of that range on Tuesday. On Thursday, the issue rose sharply higher and continued to move in that direction as of mid-day.
If Priceline closes above $1100.00, it would only be the second instance in 2015.
On January 2, it ended the session at $1142.05 before falling under $1000.00 for the first time since October 2013.
The company is due to announce Q4 earnings on February 19; the Street is looking for EPS of $8.85.
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