Booking Holdings (formerly Priceline) Message Board

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Technology Stocks : Booking Holdings (formerly Priceline)

BKNG 5,441

0.0%

Dec 29 3:59 PM EST

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To: PeterGx who wrote (2039)	12/13/1999 3:15:00 PM
From: Enam Luf	Read Replies (3) of 2743

You forgot a couple of things. 1. Priceline is reporting gross revenues for the time being. In reality, it should only report net revenue (about 1/10 of the gross). Acting as a broker for someone else's product does not entitle u to record the entire sale as your own $$$. 2. Priceline's model is only really applicable to industries w/ perishable goods. 3. How can PCLN's business model scale in groceries and the like. If sales were ever to get that big, the retail and existing stores would have to revamp their operations to handle the pcln related volume. This is highly unlikely and more importantly, out of pcln's management's control. 4. A good percentage of pcln users walk away unsatisfied (their asking price fetches no sellers). This results in a poor experience and lack of incentive to return.. I'm sure there are more, but in the end, pcln's model is limited at best. That will come to be reflected in the stock price over time. Another 75% downside is not unlikely imo. -enam

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