4 Replies Latest reply: Nov 25, 2019 10:59 AM by feibus RSS

    Expedia Stock Price

    kmcbhense Contributor

      I don't know if this has been brought up or not. Excuse me if it has.

       

      Expedia stock price has gone from $139 in late July, now to the mid $90s. Bad third quarter earnings, blaming VRBO and Trivago way slower growth than they expected.

        • Re: Expedia Stock Price
          feibus Senior Contributor

          Third and fourth quarters are their slower quarters for bookings.  It's first quarter you want to watch for, because that tells you what's happening in their market and if you look to the other travel sites and airlines and such, you might spot a trend if the entire market is feeling the same thing vs just one company having an issue.

            • Re: Expedia Stock Price
              ambidextrous Active Contributor

              EXPE has not been this low since they bought HomeAway at the end of 2015. This dip is deeper than others.

               

              The call with investors is interesting reading. Excerpt:

               

              "As discussed on their call yesterday, trivago saw volatility in their marketplace related to new advertiser features they introduced. That contributed to lower-than-expected revenue and a significant year-over-year decline in Q3 adjusted EBITDA. Gross booking and room night trends at Vrbo also remained muted, and we incurred additional costs related to our payment processing migration. As a result, we have reduced our 2019 profit expectations for both trivago and Vrbo"


              Full text: https://ir.expediagroup.com/static-files/22ed4040-3a69-4f38-a219-2ae4e66dc4f5


                • Re: Expedia Stock Price
                  feibus Senior Contributor

                  Reading between the lines:

                   

                  Those additional costs are one-time and related to having to accelerate their migration of owners to the new system because of Yapstone.  Once that mess is finally over, the cost issue will be over as well.

                   

                  Gross bookings being "muted" doesn't say whether it's just not a big increase or was a small decrease or whatever.  Intentionally vague about what's going on.  And it also doesn't say why, but one reason could be that they just don't do much mass marketing in Q3 (as opposed to search marketing, which goes on year-round) because that's not when most people book vacations.  On the other hand, expect to see a lot of Vrbo ads coming during late December and January, just like last year.

                   

                  Don't know enough about Trivago to know whether that pricing platform is significant driver of profits or revenue.

                • Re: Expedia Stock Price
                  scottr Active Contributor

                  Bookings are compared against the same quarter in the previous year.  The Gross Booking $ have been decelerating for almost 2 years now, to the point where they have been nearly flat for the last 2 quarters  Q4 won't be any better.  Maybe Q1 will show some growth, but I don't see this happening, based on the bans and restrictions that have been accelerating, due to OTA policies.