Marriott's New Strategy Could Lift the Stock -- ICYMI

Credit: The Street
Published on March 18, 2019 - Duration: 01:58s

Marriott's New Strategy Could Lift the Stock -- ICYMI

Wake up -- it's Monday!

And while you might not be waking up in a Marriott , you can definitely consider the stock.

Marriott, RealMoney's Stock of the Day, is making a push for the higher end of the market at a time when many economists are warning consumer spend will slow considerably, and many economies are showing signs of slower growth.

Marriott CEO Arne Sorenson said the company will increase its number of upscale and higher-priced hotel room by 5%.

But here's the logic to that move: Millennials are prone to placing more of their discretionary spend on experiences and vacations, rather than material goods.

Plus, the world's affluent population continues to grow, a tailwind for Marriott.

Related.

Marriott Shifts Focus to Upscale Offerings Related.

Marriott Takes Aim at Millennial-Fueled Travel Trends to Fend Off Airbnb Marriott shares rose 2.23% to $125.04 Monday, as the company's aggressive new growth plan could enable shareholders to see upwards of $11 billion in dividends and stock buybacks by 2021, according to Marriott.

Related.

Marriott Is Booking Gains on Monday Thanks to Aggressive Growth Plan In other news, while Facebook may be a good stock pick due to its growing Instagram platform and mobile payments push, an analyst from Needham and Co.

Mentioned a potential headwind that could pressure its shares.

"Silicon Valley is a competitive place for top talent and losing these senior executives from FB may cause them to land at a company that competes with FB," wrote Needham and Co.

Analyst Laura Martin, who downgraded Facebook from Buy to Hold, in a note out Monday morning.

Live videos on Facebook of the New Zealand shooting incident, which Facebook couldn't remove quickly, could hurt the Facebook brand and accelerate the talent flight issue, Martin said.

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