Pete Najarian & Mike Murphy Debate On Priceline
Pete Najarian and Mike Murphy have very different views on Priceline Group (NASDAQ: PCLN) and in the Bull vs. Bear segment of CNBC's Fast Money, they tried to explain the reasons behind the trades they would make in this name.
Pete Najarian is bullish and he said that this company has been growing for the last decade and its revenue and margins are great. He is also impressed with the acquisitions and the last one gives Priceline an exposure to the Chinese market. The stock is trading at forward P/E of 20 and the company has a lot of cash.
Mike Murphy commented that no one can debate about what Priceline has done. It has been doing great, however it has a history of beating earnings expectations and now the bar is set pretty high. When you look at analysts recommendation, there are three hold recommendations and all the others are buyers.
For Mike Murphy, this means that the market is expecting to see a big beat from Priceline. It is important to say that on the last earnings report, the stock sold off. He added that every sign of a slow down for Priceline would be a reason to sell and that is why he is not a buyer before the earnings. With present geopolitical uncertainty the risk is pretty high and when you talk about Priceline you talk about Europe and emerging markets as their key growth areas.
Mr. Najarian commented that the whole sector had significant gains and he named Expedia (NASDAQ: EXPE) as the stock that is making new highs. Any pullback would be a great buying opportunity, thinks Pete Najarian.
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