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Online Travel

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According to BizRate.com, e-commerce is starting to stabilize, with sales returning to 97% of normal. Travel sites haven't fared as well, with Priceline saying that bookings have only returned to 65% of the normal rate. Expedia is only at 45%, and Travelocity is back to 70%.

Online travel stocks took a beating last week, so lets see how they have responded this week.

Priceline Daily Chart

Shares of Priceline.com (PCLN) are holding up better than their counterparts due to Hong Kong billionaire Li Ka-shing. Li has purchased about 4 million shares over the past few days, raising his stake in the company to 29%. Even with that buying, Priceline has been unable to climb above the September 17th high of $3.30. If PCLN can climb above that level, it might have $1 worth of upside before it runs into more resistance.

Expedia Daily Chart

Amazon (AMZN) has teamed up with Expedia (EXPE) to open an online travel store, but its not helping Expedia stock. After a brief rally, Expedia has turned south, and is down 7.35% today. That puts the stock on course to once again test support at $19. EXPE could be setting up a trading range between $19 and $25.

Travelocity Daily Chart

Travelocity (TVLY) isn't fairing any better. The stock was trying to consolidate around $13, but has lost about 14% over the past three days. Now the stock could be bound for support at $9.75.

Jeffrey Canavan
Assistant Analyst

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