Priceline surprises analysts with recession-resistant Q2

The press release indicates to me that Priceline should continue to do well. The demand for travel services seems to be there, and you can make a pretty sound argument that the company knows how to leverage its brand equity to convince budget-conscious travelers to stop by its domain and book a flight or two.

Yet, when I look at the guidance, I can't help feeling that the stock is overvalued. Also, the performance of the shares has been so outstanding. The stock hit $150 on Monday. The 52-week low is around $45. It's not the most powerful 52-week range ever recorded, but it nevertheless is compelling in its own right.

Priceline is clearly in momentum territory. From a technical perspective, this could be the time to buy. A fundamental take, on the other hand, would suggest otherwise. I am reminded of Apple (NASDAQ: AAPL) when I look at Priceline. It's this high-priced stock that you swear should get weak, but you know it might not. And it drives you insane.

You want to trade Priceline? Make sure you use a tight stop. You want to invest in Priceline? All I can say is, wait for a better price.

Disclosure: I don't own any company mentioned; positions can change without notice.