AWAY

Marriott International Can Survive COVID-19

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Image Shown: Shares of Marriott International Inc have recovered somewhat from their March 2020 lows and are currently trading in the lower bound of our fair value estimate range. By Callum Turcan On August 10, Marriott International Inc (MAR) reported second quarter 2020 earnings that missed both consensus top- and bottom-line estimates. Marriott International’s financials have been devasted by the ongoing coronavirus (‘COVID-19’) pandemic, though its saving grace has been its asset-light business model which is built around property management and franchise fees. Most of its revenue comes from managing third-party locations and franchising out its various hotel brands to third-parties including Courtyard, Fairfield by Marriott, Residence Inn, Marriott Hotels, Sheraton, Westin, and others. Please note many of its franchised … Read more

Lyft Can’t Run on Fumes Forever

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Image Shown: Lyft Inc’s business model is not well suited for the pandemic. Its financial performance was decimated during the second quarter of 2020 as its active rider base opted to stay home or use other methods of transportation. Image Source: Lyft Inc – Second Quarter of 2020 Supplemental Data By Callum Turcan On August 12, the ridesharing company Lyft Inc (LYFT) announced second quarter 2020 earnings that beat consensus bottom-line estimates but missed consensus top-line estimates. The ongoing coronavirus (‘COVID-19’) pandemic has posed a major headwind for Lyft due to workers commuting less, reduced demand from late-night bar patrons, and other factors. Management did note within Lyft’s earnings release that rideshares were up 78% in the month of July … Read more

Investors Punish Priceline for Conservative Guidance

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This isn’t the first time this year Best Ideas Newsletter portfolio holding Priceline (PCLN) has been punished by investors for issuing weak guidance after a strong quarter (see our first-quarter piece). The strength of the US dollar played an important role in the weakness of the firm’s performance, but we didn’t see any material fundamental deterioration in its operations in the company’s third-quarter results, reported November 9. Gross travel bookings at Priceline grew ~22% in constant currency and 7% as reported to $14.8 billion in the third quarter on a year-over-year basis. The strength was driven by its international operations, where gross travel bookings grew 25% in constant currency. The company’s global accommodation business booked a record 116 million room … Read more