Expedia fell into extended trading on Thursday after the quarterly release.
The online travel booking site saw a 67% drop in revenue to $ 920 million in the three months to December, below analysts’ estimates of more than $ 1 billion. A loss of $ 2.64 per share was greater than an expected $ 1.94.
However, the company blew its earnings into the return mode. The share rose 268% from its low in March and reached its highest level since 2017, even though the travel industry was still struggling amid the coronavirus pandemic.
But the performance still pales in comparison to Airbnb. Since its publication on December 10, the share has risen more than 200%. Airbnb’s $ 130 billion market capitalization is greater than all other online travel booking sites, including Expedia, Booking and TripAdvisor.
Katie Stockton, founder of Fairlead Strategies, broke the Airbnb chart for CNBC’s “Trading Nation” on Thursday.
‘It’s an increase in the medium term, only with the history up to December, and with a limited price history we do not really have ways to see how overbought the stock is, but there are no real signs of upside exhaustion. [Airbnb] earnings, ‘she said.
Airbnb will report earnings for the first time on February 25 as a listed company. While Airbnb benefited from a consumer preference for holiday rentals over hotel chains during the pandemic, analysts were still reeling. Analysts polled by FactSet expect a net loss of $ 8.42 per share for the quarter ended December.
“If you look at Expedia, on the other hand, the rising trend still has a positive momentum over time horizons, and I’m not really one to fight it. But what I would say is that risk reward does not have a great technical perspective. not, ‘Stockton said.
She highlights a support band of $ 135 and resistance of $ 161, equal to the high of 2017. The stock closed at $ 149.91 on Thursday.
“It creates a bad imbalance between the downside and the upside potential here in terms of these levels, so I think it’s not very compelling, especially since the broader market is showing signs of short-term exhaustion,” she said.
According to Boris Schlossberg, managing director of FX Strategy at BK Asset Management, the following shares of Expedia will depend on how well its investments in its holiday home brand Vrbo have paid off.
“The market really bets on a very specific journey, which means that when we are released from the pandemic, most of us go to the beach or to the lake. We do not go to the cultural centers, the cities, the museums, the restaurants, the theaters … Airbnb excels in urban centers and Vrbo performs much better in holiday resorts, “Schlossberg said during the same interview.
Expedia generates 11% of its total revenue through Vrbo.
Disclaimer