With a market cap of $24.3 billion, Expedia Group, Inc. (EXPE) stands as a major player in the online travel industry. Based in Seattle, Washington, the company provides a wide range of technology-driven tools for travelers, enabling efficient research, planning, and booking of travel. Expedia’s portfolio includes well-known brands such as Expedia.com, Hotels.com, Vrbo, and trivago, serving various travel needs.
Being classified as a “large-cap” stock, defined as companies valued at $10 billion or more, Expedia Group operates across multiple segments: B2C, B2B, and metasearch. This structure allows it to connect travelers with accommodations, airlines, rental cars, cruises, and more in numerous locations around the globe. Through initiatives like loyalty programs, mobile applications, and advertising, the company offers significant value to both travelers and suppliers.
Despite its robust offerings, the online travel company’s stock has seen a decline of 1.4% from its 52-week high of $192.34 reached on December 9. Nevertheless, EXPE shares have grown by 28.2% in the last three months, outperforming the Nasdaq Composite’s (NASDAQ) 10.8% gain during the same period.
Looking at a longer timeframe, EXPE has appreciated by 48% in the past six months, significantly outpacing NASDAQ’s 14.5%. However, over the past year, Expedia shares have climbed only 22.1%, trailing behind NASDAQ’s 33.6% return.
EXPE has remained above its 50-day and 200-day moving averages since June, despite some market volatility.
On November 7, Expedia reported Q3 revenue of $4.1 billion, which was below expectations. In an interesting turn, shares rose by 3.8% the next day, aided by positive investor reactions to adjusted EPS of $6.13, which exceeded forecasts. Additionally, the company provided optimistic guidance for Q4 2024, estimating gross bookings growth between 6% and 8%, led by improvements in its air operations. Significant growth in high-margin areas such as advertising revenues, which surged 32%, along with an 18% rise in the B2B sector, reassured investors. Efforts to reduce debt and a $3.2 billion share repurchase authorization have also contributed to favorable market conditions.
Looking at competitors, Booking Holdings Inc. (BKNG) underperformed EXPE with a 28.7% increase over the past six months. However, Shares of Booking Holdings rose 44.9% over the last year, highlighting the competitive landscape.
Analysts appear cautiously optimistic regarding EXPE’s future. Among the 32 analysts who track the stock, there is a consensus rating of “Moderate Buy,” with current trading above the mean price target of $184.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
