Priceline and Expedia: Short/Long Pair Trade Still On

A New York presenter still likes the short/long pair trade on Priceline and Expedia, but has taken some off the table. The Priceline (NASDAQ: PCLN, $185.11) leg of the trade is clearly a winner, with the stock dropping close to 30% since the presentation back in April. The valuation discrepancy has lessened, but is still severe based on projected EBITDA numbers. The presenter notes that while Expedia's progress in Europe has been steady, the gains have been slower than he had originally anticipated.