Expedia fell into the extended market on Thursday after its quarterly launch.
The online travel booking website recorded a 67% drop in revenue to $ 920 million in the three months to December, below analysts’ estimates for more than $ 1 billion. A loss of $ 2.64 per share was greater than expected at $ 1.94.
The company has skyrocketed its earnings in return mode, however. Shares rose 268% from the March low, reaching their highest level since 2017 on Thursday, even as the travel industry is still struggling amid the coronavirus pandemic.
But, that performance still pales in comparison to Airbnb. Since going public on December 10, these shares have risen more than 200%. Airbnb’s market capitalization of $ 130 billion is greater than all other online travel booking sites, including Expedia, Booking and TripAdvisor.
Katie Stockton, founder of Fairlead Strategies, analyzed the Airbnb chart for CNBC’s “Trading Nation” on Thursday.
“It’s already in a medium-term bullish trend, just with the December story, and with the limited price history, we really have no way of discerning how much the stock is overbought, but there are no real signs of bullish sellout. as we enter [Airbnb] earnings, “she said.
Airbnb is scheduled to report earnings on February 25 for the first time as a publicly traded company. Although Airbnb benefited from consumer preference for vacation rentals over hotel chains during the pandemic, it still suffered blockages – analysts interviewed by FactSet predict a net loss of $ 8.42 per share in the quarter ended in December.
“If you look at Expedia, on the other hand, this upward trend still has a positive momentum over time horizons and I’m really not fighting that. But what I’d say is that the payoff for risk is not great technical point of view, “said Stockton.
It highlights a support band at $ 135 and resistance at $ 161, level with its 2017 high. The stock closed at $ 149.91 on Thursday.
“This creates a big imbalance between the bearish and bullish potential here in terms of those levels, so I don’t think it’s very attractive, especially with the broader market showing some signs of short-term bullishness,” she said.
Expedia’s next stock move depends on how well its investments in its Vrbo vacation rental brand have paid off, according to Boris Schlossberg, managing director of foreign exchange strategy at BK Asset Management.
“The market is really betting on a very, very specific type of trip that is when we get out of the pandemic, most of us will go to the beach or the lake. We will not go to cultural centers, cities, museums, restaurants, theaters … Airbnb stands out in urban centers and Vrbo stands out much more in holiday places, “said Schlossberg during the same interview.
Expedia generates 11% of its total revenue through Vrbo.
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