Booking Holdings (formerly Priceline) Message Board

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Technology Stocks : Booking Holdings (formerly Priceline)

BKNG 5,394

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Dec 19 3:59 PM EST

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To: H James Morris who wrote (2055)	12/12/1999 11:07:00 AM
From: PeterGx	Read Replies (1) of 2743

James - I am glad you put the paragraph concerning Priceline.com in bold. Only you should go back and re-read it. It is in counter to the author's thesis, not in support of it. Retailers purchase goods from suppliers and then resell them to consumers. That is what they do and that is why they are called retailers. The price retailers pay for the goods (including some inventory costs) is Cost Of Goods Sold (COGS) and the amount retailers receive upon sale of the goods is Revenue. Earnings are derived by subtracting COGS from Revenues (net some additional expenses). Every retailer does it this way. Why should Priceline do it differently? (It would be more worrisome if they did) Read your quoted paragraph again and pay attention to what it says, especially the part about the risk that (all)retailers assume. In addition, there is a difference in commission and profit from re-sell. I'll let you figure this out on your own. (HINT - think about real estate transactions... owners, buyers, agents)

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