Expedia (EXPE) Plummets 14% to a 5-Month Low Following Disappointing Q1 Results and Reduced Revenue Forecast

  • Expedia Group Inc. shares hit their lowest level since November after the company posted disappointing first-quarter bookings and lowered its full-year revenue growth guidance.
  • The online travel giant blamed a slower-than-expected recovery in its vacation rental business.
  • Expedia shares have declined as much as 14 per cent to $116.50 in New York so far on Friday, May 3.

Expedia shares plummet after disappointing Q1 bookings and lowered full-year revenue growth guidance, with the company blaming a slower-than-expected recovery in its vacation rental business.

Expedia Q1 numbers – Key Metrics

The Seattle-based company posted first-quarter gross bookings of $30.2 billion, missing analysts’ average estimate of $30.5 billion. The company cited a “slower than anticipated” recovery in its vacation rental business Vrbo. That, combined with slower-than-expected growth in the rest of its consumer business, led the company to lower its full-year sales guidance with margins relatively in line versus last year.

Vrbo’s Slow Recovery

Vrbo’s recovery has been slower than expected and has put pressure on gross bookings, Expedia Chief Executive Officer Peter Kern said on Thursday. Vrbo has lost share to Airbnb Inc. and Booking Holdings Inc., the parent company to brands like Kayak and Priceline. Kern also pointed to a years-long and resource-intensive back-end update that was completed around late last year, which served to unify Expedia’s two other main brands, Expedia.com and Hotels.com, onto a single technical platform.

Outlook

The company has vowed to spend a record amount on marketing this year to narrow the gap in vacation rentals with Airbnb as it emerges from its costly technical update. However, the broader environment has seen headwinds as the lifting of pandemic-induced travel restrictions has led to more travelers seeking out urban adventures, as opposed to the sort of rural destinations and resorts where most Vrbos are located.

Conclusion

The recovery of the global travel market has also been uneven. Growth in the US has stagnated while demand in Europe and Asia Pacific markets has been more enduring. This has hurt Expedia more than peers such as Booking as most of its business is based in the US, while Booking is more exposed to Europe.

Don't forget to enable notifications for our Twitter account and Telegram channel to stay informed about the latest cryptocurrency news.
spot_imgspot_imgspot_imgspot_img

Latest News

Indian Union Budget 2024-25 Ignores Cryptocurrency Industry, Maintains 30% Tax and 1% TDS

India's Union Budget for 2024-25 has elicited...

Bitcoin Set to Surge Over 100% to $120,000 Amid Chinese Economic Moves

The cryptocurrency market is abuzz...

XRP Soars 35% But Lacks New Investor Inflows Amidst Surge

XRP experienced a remarkable 35%...
spot_imgspot_imgspot_imgspot_img

PRO Analysis

Notcoin Price Forecast: Continued Bearish Trend Predicted for NOT

Notcoin continues to struggle in a bearish...

Toncoin Eyes Bullish Reversal Amid DeFi Growth and Low Inflation Rate

The Toncoin market demonstrates a...

Bitcoin Inches Towards $70,000 Amid Ethereum ETF Launch in the US

The Bitcoin price is experiencing increased volatility...

Shiba Inu Price Volatility and 500% Burn Rate Surge Signal Community Strength

Shiba Inu price experiences notable volatility while...
Gideon Wolf
Gideon Wolfhttps://en.coinotag.com/
GideonWolff is a 27-year-old technical analyst and journalist with extensive experience in the cryptocurrency industry. With a focus on technical analysis and news reporting, GideonWolff provides valuable insights on market trends and potential opportunities for both investors and those interested in the world of cryptocurrency.
spot_imgspot_imgspot_imgspot_img

Salesforce (CRM) Shares Plunge 20% on Weak Earnings Forecast, Impacting US Stock Markets

Salesforce Inc. shares tumbled about 20 per cent on Thursday after the company posted weaker revenue than Wall Street estimates for the...

EU Wheat Crop Forecast for 2024/25 Hits 4-Year Low, Stockpiles Expected to Rise

The European Commission has maintained its forecast for the EU's main wheat crop in 2024/25 at a four-year low. ...

2024 IPO Surge: 57% of SME Issues Achieve Over 100% Subscription Rate

The enthusiasm for initial public offerings (IPOs) shows no signs of diminishing, as retail investor participation has increased substantially in recent years. ...