Priceline.com beat Wall Street estimates Tuesday, posting a 66 percent increase in fourth-quarter earnings, sending the stock higher — and trader Joe Terranova thinks it’s still cheap.
“Apple certainly showed me you don’t sell short stocks with such cheap valuation, and that’s what Priceline has,” Terranova of Virtus Investment Partners said on “ Fast Money .”
Terranova focused on the stock’s valuation, trading at 16 times 2013 earnings, and the company’s growth potential outside the United States.
“You’re talking mid-teens for Priceline, which is incredibly cheap, and again, the emerging markets story, they’re only in the first leg of that,” he said.
Trader Zach Karabell of RiverTwice said he had sold some $505 puts 3½ weeks ago and continued to sell off, only to have the stock climb higher.
“Apple has clearly shown us that large stocks with three-digit numbers can go up exponentially,” he said.
Priceline.com shares closed at $632.76, up 7 percent.
Over the past five years, Priceline.com stock has soared more than 1,000 percent. By comparison, Apple stock increased by 500 percent within the same period.Page 1 of 3 | Next Page