Investing in Expedia: Analysts Weigh in on Value and Risks Amid Revenue Shortfalls and Marketing Spend Shifts
Portfolio Pulse from Anusuya Lahiri
Analysts from Credit Suisse, JMP Securities, Benchmark, Mizuho, and Susquehanna have provided their insights on Expedia Group Inc (EXPE) following its 2Q23 results. The results showed a revenue shortfall due to lower gross bookings, offset by strength in B2B. The company's adjusted EBITDA exceeded forecasts, driven by higher gross profits and lower operating expenses. The analysts highlighted the potential for faster product innovation, bookings growth, and marketing leverage. They also noted the company's ongoing tech stack/Vrbo migration and the launch of One Key. The analysts have mixed views on the company's stock, with some maintaining a Hold rating while others have an Outperform or Buy rating.
August 04, 2023 | 7:18 pm
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NEUTRAL IMPACT
Expedia's 2Q23 results showed a revenue shortfall due to lower gross bookings, offset by strength in B2B. The company's adjusted EBITDA exceeded forecasts, driven by higher gross profits and lower operating expenses. The analysts highlighted the potential for faster product innovation, bookings growth, and marketing leverage.
The analysts' views on Expedia are mixed, with some maintaining a Hold rating while others have an Outperform or Buy rating. This suggests that the company's stock could go either way in the short term. However, the potential for faster product innovation, bookings growth, and marketing leverage could have a positive impact on the company's stock in the long term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
Mastercard was mentioned in the context of Expedia's wins in the B2B arena.
Mastercard was mentioned in the context of Expedia's wins in the B2B arena. However, the news does not provide enough information to determine the potential impact on Mastercard's stock.
CONFIDENCE 80
IMPORTANCE 20
RELEVANCE 20
NEUTRAL IMPACT
Walmart was mentioned in the context of Expedia's wins in the B2B arena.
Walmart was mentioned in the context of Expedia's wins in the B2B arena. However, the news does not provide enough information to determine the potential impact on Walmart's stock.
CONFIDENCE 80
IMPORTANCE 20
RELEVANCE 20