Despegar.com IPO: What Investors Need to Know

As a whole, the world is traveling more these days. That helps explain the growth and popularity of America's top two online travel agency (OTA) stocks, Expedia (NASDAQ: EXPE) and Priceline Group (NASDAQ: PCLN).

Despegar.com, which is going public within days, says in its IPO prospectus that it's the top OTA in its home region of Latin America. That may be true, but will it be a good stock to own?

Think of Despegar.com as the Expedia or Priceline of South America. In fact, Expedia is a major shareholder in the company, owning a pre-IPO stake of over 16%. Expedia is also the exclusive provider of Despegar.com's non-Latin America hotel bookings, and the "preferred" provider within the region.

Source: Fool.com