Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: IQBAL LATIF who wrote (29768)	11/19/1999 6:08:00 AM
From: IQBAL LATIF	Read Replies (2) \| Respond to of 50167

Stocks in the News: Priceline.com 11-18-99 \| 05:29 PM \| Mark Anderson Priceline.com PCLN is out to gain respect for its business model. Internet pacts with US Airways, United Airlines, and American Airlines are an important step forward. Priceline.com lets online customers name a price for airline tickets, hotel rooms, and mortgages then tries to match them up with sellers willing to meet that price. The airline pacts will double the number of tickets it can offer. The deal was pricey. Priceline.com offered the carriers an 11% equity stake, and the deal's structure will trigger a $1.1 billion charge. The deal solves Priceline's shortage of ticket supply, which has hampered a business that needs high volume due to thin margins. As it stands, only 35% of the visitors that seek tickets end up buying. "This is definitely a good thing for getting their business model to work like it's supposed to," says David Kathman, Morningstar analyst. "But buyers have to deal with a lot of restrictions and lack of options, and the number of people who will accept that seems inherently limited." The market also remains skeptical. Priceline.com's stock fell 5 to 71 7/8. It has struggled since its April IPO, when its stock price shot up 300% the first day. After hitting $150, the stock has fallen back to around where it started, in the $60 to $70 range.