This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

[video] Quick Take: Priceline Costs More Than Groupon but Could Be a Better Deal

NEW YORK (TheStreet) --  Priceline.com (PCLN) and Groupon (GRPN) reported earnings on Thursday night. Groupon surprised analysts by reporting a loss of 12 cents a share; a profit of 6 cents per share had been expected.

David Nelson, chief strategist at Belpointe Asset Management, told TheStreet's Debra Borchardt he doesn't know if Groupon's turnaround plan will work. The company has been spending a lot of money trying to enhance its business model and generate customer growth. 

He agreed with Borchardt that investors will likely be too impatient to wait for the turnaround process to take hold. 

On the other hand, Priceline reported great results, beating on the top and bottom lines. The company earned $8.85 per share, beating analysts' expectations of $8.29 per share, on revenue of $1.54 billion. 

However, Nelson said he's surprised to see the stock move higher Friday, given the company's much lower-than-expected guidance. 

Priceline expects earnings per share of $6.35 to $6.85 for next quarter while analysts, on average, expect $7.19 per share. Management cited a later Easter holiday as its reason for the lower guidance. 

Nelson said the company has continued to increase earnings and revenue by roughly 25% per year and trades with a reasonable forward price-earnings ratio of 25. Between Priceline and Groupon, Priceline is cheaper based on valuation. 

While Priceline's share price is roughly 160 times that of Groupon, Nelson said Groupon would need to trade at about $3 per share to be equally valued to Priceline. 

-- Written by Bret Kenwell in Petoskey, Mich.

Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,113.54 +61.81 0.36%
S&P 500 1,983.53 +9.90 0.50%
NASDAQ 4,456.0160 +31.3120 0.71%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs