14 years later, Priceline stock feels frothy

Priceline, the name-your-price online travel service, is closing in on a new all-time high -- 14 years after its last one.

The company's stock jumped 3.9% to $969.89 a share Friday, sparked by a 24% increase in profit to $437 million on Thursday. At one point during the trading session, Priceline shares were just $5 a away from the $1,000 share milestone.

On a split-adjusted basis, the stock's previous record was $974.27 a share, set on April 30, 1999. Its low: $6.60 per share, set Oct. 9, 2002.

Priceline's recent gains have been boosted by a surge in travel in Europe, where the company has a heavy presence.

The company said its sales growth would be 23% to 30% and warned that unrest in the Middle East and Africa could present problems for travelers.

The company also noted a deceleration in growth rates Hotel room night reservation growth was 38% in the second quarter, the company noted, down from 39% in the second quarter of 2012 and 56% the same period in 2011.

"Given the sheer size of our hotel reservation business, we believe it is highly likely that our year-over-year growth rates will continue to decelerate, though the rate of deceleration may fluctuate," the company said in its quarterly filing, released Thursday.