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S&P's Amobi optimistic on travel stocks despite headwinds

Tuesday, March 22, 2016 - 02:45

Tuna Amobi of S&P Global Market Intelligence says despite geopolitical and currency headwinds faced by travel-related stocks, there are reasons be to be optimistic.

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Travel related names that sound today in the wake up deadly attacks in Brussels S&P. Global market intelligence is too and I'm Moby joins me now tonight thanks so much. But joining me today we see names like Priceline and Expedia and trip advisor dot today after those bombings in Brussels. How consumers be into purpose and that's. Why I think is definitely gonna have a negative impact Wendy this company's report Q1 results. Simply. But the fact that those companies have a significant amount of exposure are. Particularly in Europe. We saw what happened last November after the Paris attacks and when they're reported Q4. The the revenue growth from room night growth for those companies were affected negatively to various degrees. So that's a respect to happen again this time. I've not seen a private plan became the first US online travel agencies the strike a deal with Cuba to make hotel rooms available to US custom as the here. Out booking dot com. Do you see these bad having any kind of impact at all. Definitely you know anytime you have you know in new market that the hot indeed a country via in the past it's definitely a positive. Four Priceline and for the whole industry out large. You know I think looking ahead. You know it's good note you open up more. Opportunities not just for travel companies but other companies that cater to various consumer. You know demand so we think definitely this is a positive. Event. All beats not in material contributor in the near term but you know definitely more symbolic if anything else. Now that's you know been seeing more of these attacks. What would it mean as you know we continue to CC even walker ran grandiose attacks you know. I'm more more faith all what does what does this mean for for consumers travel related names you know the airlines and cruise lines you know the travel online operators. But that's what I did you know risk factors that we identified you know for those type of names you know the idea that it could be. Giap political. Uncertainties. And if this of their investors keeping very close eye on because it is a lot of volatility in these names. You know in an action is big part of their business so. Foreign currency headwinds factor so I've been between. Currency had weeds and geopolitical anxieties are gonna see continued to see volatility but if you can write it out. The outlook from management but for the most bodies pretty. In courage and we've got these summer travel season coming up which should be another. In a favorable. You know tail wind for these names. Fact that CNN will be up at the peak global market intelligence. I'm Lee Todd akin and this is borders.

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S&P's Amobi optimistic on travel stocks despite headwinds

Tuesday, March 22, 2016 - 02:45