The Short Case on Priceline

Shares of Priceline.com ("PCLN" or the "Company") have been on a tear in recent years as the Company has become a dominant player in online travel. The stock has consistently outperformed Street estimates as it has been able to achieve rapid top line and bottom line growth. While PCLN has generated impressive operating results over the past two years, the Company is facing considerable headwinds which could result in a substantial correction in the coming year when factoring in its premium valuation.

PCLN's main travel sites are Priceline.com, Booking.com, and Agoda.com with other sites including Travelweb.com, Lowestfare.com, RentalCars.com, and BreezeNet.com. The Company covers over 200 airlines and over 60,000 hotel properties using price-disclosed services and its Name Your Own Price ("NYOP") system, which is available only in the U.S. PCLN also