Travel giant priceline.com (PCLN 3.59%) was the cover story of this weekend's Barron's, and it's not a flattering picture.
The article argues that shares of the "name your own price" website operator can fall by as much as 20% as competitive pressures squeeze margins and force Priceline into decelerating growth.
Investors have often flocked to Priceline stock as the high-margin leader in this growing category, and it has been the S&P 500's biggest winner over the past five years as a globetrotting six-bagger. Orbitz Worldwide (NYSE: OWW) is just starting to turn profitable, so it's not much of a challenge. Expedia (EXPE 3.02%) may be the leader in gross bookings, but Priceline's the one scoring the meatier earnings as it focuses on the more lucrative hotel commissions.
In this video, longtime Fool contributor Rick Munarriz explores the reasons why the Barron's argument on valuation is off the mark. He also points out how today's biggest challenge may be tomorrow's biggest opportunity. Priceline stock, Rick argues, is about to ascend -- not descend.
Ignore the bearish pilot warning of turbulence ahead.
