Expedia Group Seems Unable To Reach The Promised Land
Portfolio Pulse from IAM Newswire
Expedia Group (NASDAQ:EXPE) missed analysts' expectations for revenue and earnings per share, but plans to cut costs by $300-$500 million and achieve double-digit EBITDA growth. Despite challenges, including the impact of the coronavirus, the company's stock rose 10% in after-hours trading. Expedia plans to streamline operations and reduce reliance on Google, focusing on direct business and mobile. The company faces internal restructuring and external competition.
February 19, 2020 | 3:02 pm
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
Expedia plans to reduce reliance on Google by focusing on direct business and mobile, which could impact Google's advertising revenue from Expedia.
Expedia's decision to reduce reliance on Google for customer acquisition could negatively impact Google's advertising revenue from Expedia, though the overall impact on Google is likely limited.
CONFIDENCE 85
IMPORTANCE 40
RELEVANCE 50
NEUTRAL IMPACT
Expedia's work culture was compared to Amazon's, highlighting a need for more discipline. However, this mention is not directly related to Amazon's financial performance.
Amazon was mentioned in the context of work culture comparison, which does not directly impact its financial performance or stock price.
CONFIDENCE 80
IMPORTANCE 10
RELEVANCE 10
NEUTRAL IMPACT
TripAdvisor's revenue fell and its stock dropped 50% last year, highlighting the competitive and challenging environment in the travel industry.
TripAdvisor's financial struggles were mentioned to highlight the competitive environment in the travel industry, but this does not directly impact its current stock price.
CONFIDENCE 90
IMPORTANCE 30
RELEVANCE 30
POSITIVE IMPACT
Expedia missed revenue and EPS expectations but plans significant cost cuts and EBITDA growth, leading to a 10% stock price increase. The company is restructuring to streamline operations and reduce reliance on Google.
Expedia's announcement of cost-cutting measures and a focus on EBITDA growth was well-received by investors, resulting in a 10% increase in after-hours trading. The company's strategic shift away from Google reliance and focus on direct business is seen as a positive move.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100