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Based on future growth expectations, this stock is very cheap.
Expedia's (EXPE) stock has seen choppiness over the past year, but is inching toward the upside. @LikeFolio's Megan Brantley says Expedia can act on that growth, but needs to focus on consumer happiness to send its stock soaring.
Expedia has finally managed to integrate its consumer (B2C) brands under one platform in the U.S. and will leverage it to enhance customer retention and optimise marketing spending. The Wholesale (B2B) business has been the main growth driver of the group and will likely continue advancing. Despite macroeconomic challenges, Expedia remains profitable and cash-generative, aggressively buying back shares to boost earnings per share.
Expedia Group rides on growing momentum across Brand Expedia, an expanding global lodging portfolio and strong partnerships.
Expedia Group, Inc. (NASDAQ:EXPE ) Deutsche Bank Technology Conference Call August 29, 2024 5:45 PM ET Company Participants Ariane Gorin - CEO Conference Call Participants Lee Horowitz - Deutsche Bank Lee Horowitz I think that's our queue. So thanks so much for joining us.
As inflation reshapes consumer spending, travel giants Expedia, Airbnb and Booking Holdings are adjusting their strategies to drive customer engagement and bookings amid shifting family budgets and evolving preferences. Expedia is enhancing its One Key loyalty program with a co-branded credit card and expanding its global reach to boost cross-brand engagement.
The reasons behind the August market meltdown are numerous and are already moving into the rearview mirror of investors. A coolish reading in the July producer price index (PPI) has investors putting their foot on the gas to get ahead of the Federal Reserve cutting interest rates.
Expedia surprised the markets with a Q2 turnaround, sending shares up ~10% after earnings. The company achieved an acceleration in bookings growth to 6% y/y, while rival Booking.com's bookings decelerated to 4% y/y. The company continues to develop its One Key program, touting its cash-back advantages against rivals' weaker loyalty initiatives. In July, the company also released new One Key credit cards.
Expedia Group stock is at a decent valuation for a second-class business but is showing signs of limited growth potential. Expedia operates as an online travel company with multiple brands and faces tough competition from Booking and Airbnb. Despite recent positive financial results, Expedia's balance sheet and capital allocation raise concerns about long-term sustainability.
The S&P 500 and the Nasdaq added around 0.5% on Friday, wrapping up a volatile trading week as economic uncertainties pressured stocks. The Dow was up 0.1% on the day.
Analysts at Wedbush have upped their price target on Expedia Group Inc (NASDAQ:EXPE, ETR:E3X1) after the online travel agency posted “better-than-feared” second quarter earnings amid moderating demand trends and macro uncertainty, tightening booking windows, and softer pricing across flights and hotels. “Though management's guidance for both Q3 and the full year were modestly below estimates, outperformance this quarter should partially offset weaker demand trends in the second half,” the analysts wrote in a note to clients.