Expedia fell in extended transactions on Thursday after its quarterly launch.
The online travel booking site saw a 67% drop in revenue to $ 920 million in the three months to December, below analysts’ estimates of more than $ 1 billion. A loss of $ 2.64 per share was higher than the estimated $ 1.94.
However, the company showed its gains in return mode. The stock rose 268% from its lowest level in March, reaching its highest level in 2017 on Thursday, even with the tourism industry still battling the coronavirus pandemic.
But that performance fades compared to Airbnb. Since it went public on December 10, shares have risen by more than 200%. Airbnb’s $ 130 billion market cap is higher than all other online travel booking sites, including Expedia, Booking and TripAdvisor.
Katie Stockton, founder of Fairlead Strategies, broke down CNBC’s “Nation Nation” chart on Thursday.
“It is already on an upward trend in the medium term, only with the history of December and, with a limited history of prices, we really have no way to discern how much stock is bought, but there are no real signs of exhaustion ascending as we enter [Airbnb] earnings, “she said.
Airbnb is scheduled to report earnings on February 25 for the first time as a listed company. While Airbnb benefited from consumer preference for holiday rentals over hotel chains during the pandemic, it continued to suffer bottlenecks – analysts surveyed by FactSet anticipate a net loss of $ 8.42 per share for its December quarter.
“If you look at Expedia, on the other hand, this upward trend still has a positive momentum on the horizons and I’m not really one to fight it. But what I would say is that the risk reward is not technically high, “Stockton said.
It highlights a support band at $ 135 and resistance at $ 161, a high in 2017. The stock closed at $ 149.91 on Thursday.
“This creates a negative imbalance between the potential for disadvantage and growth here in terms of these levels, so I don’t think it’s very convincing, especially since the wider market shows some signs of short-term depletion of growth,” he said. she.
Expedia’s next stock move depends on how well its Vrbo holiday rental brand has paid off, according to Boris Schlossberg, general manager of FX strategy at BK Asset Management.
“The market is really betting on a very, very specific type of trip, which is that when we are free of the pandemic, most of us will go either to the beach or to the lake. We will not go to cultural centers, cities, museums, restaurants, theaters … Airbnb excels in urban centers, and Vrbo excels much more in vacation spots, “Schlossberg said in the same interview.
Expedia generates 11% of its total revenue through Vrbo.
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