GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

Baron Funds Comments on HomeAway Inc.

June 06, 2013 | About:
Holly LaFon

Holly LaFon

258 followers
HomeAway, Inc. (AWAY), the leading online provider of listings and services to the vacation rental industry, rose 48% in the quarter due to strong fourth quarter results. We admire HomeAway's business model and positioning and believe that the company can grow its cash flow multiple fold going forward, as it adds listings, grows revenue per listing and increases its margins through scale. Though this opportunity is not lost on investors, the stock had fallen late last year because the rate of growth was decelerating and the company did not meet earnings expectations. We added to our position believing the stock was attractive at the lower valuation and that results were soon to accelerate. We were rewarded this quarter when just that occurred and the stock was re-rated higher.

From Baron Funds’ first quarter 2013 commentary.


Rating: 2.0/5 (2 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK