Online Travel Investment - Orbitz Worldwide Inc
American Automobile Association(AAA) in December projects this year 92.3 million people will travel 50 miles or more during the Christmas and New Year holiday, a 3.1% increase compared to 2009. And one of the industries benefits the most from the holiday travel is probably the online travel industries as more people are using websites such as Expedia.com (Nasdaq:EXPE) and Priceline.com (Nasdaq:PCLN) to book their airline tickets and hotels.
Another player in the online travel industry is Orbitz Worldwide Inc(NYSE:OWW) operating under the website orbitz.com. Compared to Expedia and Priceline, Orbitz is a smaller player with annual sale of $738 million last year, about 1/3 of any of the other two major travel sites. The financial storm also hit the company as the revenue shrank 15% from 2008 to 2009 and net loss grew from $85 million in 2007 to $337 million in 2009. Based on the revenue for the first 3 quarters the revenue this year could be slightly better than last year while the company could swing to net income this year, a very positive sign.
Shares of Orbitz have gained 56% to $5.53 from the 52 weeks low of $3.56 in July. However for the year the stock is still down 29%. The technical chart shows negative sign as the stock is traded below both 50 day and 200 day moving average. KD lines also show weakness as both K line and D line are heading downward. The current support is at $4.91 so expect the stock to keep going downward until it reached the near term support.
Another player in the online travel industry is Orbitz Worldwide Inc(NYSE:OWW) operating under the website orbitz.com. Compared to Expedia and Priceline, Orbitz is a smaller player with annual sale of $738 million last year, about 1/3 of any of the other two major travel sites. The financial storm also hit the company as the revenue shrank 15% from 2008 to 2009 and net loss grew from $85 million in 2007 to $337 million in 2009. Based on the revenue for the first 3 quarters the revenue this year could be slightly better than last year while the company could swing to net income this year, a very positive sign.
Shares of Orbitz have gained 56% to $5.53 from the 52 weeks low of $3.56 in July. However for the year the stock is still down 29%. The technical chart shows negative sign as the stock is traded below both 50 day and 200 day moving average. KD lines also show weakness as both K line and D line are heading downward. The current support is at $4.91 so expect the stock to keep going downward until it reached the near term support.
posted by Stock Geek at
10:38 PM
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