Expedia fell into extended trading on Thursday after the quarterly release.
The online travel booking site reported a 67% drop in revenue to $ 920 million in the three months to December, lower than analyst estimates of more than $ 1 billion. A loss of $ 2.64 per share was greater than the expected $ 1.94.
However, the company shot into revenue in comeback mode. The stock was up 268% from its March low, hitting its highest level since 2017 on Thursday, even as the travel industry continues to struggle amid the coronavirus pandemic.
But that performance still pales in comparison to Airbnb. Since the IPO on December 10, that share has risen by more than 200%. Airbnb’s market cap of $ 130 billion is larger than any other online travel booking site, including Expedia, Booking and TripAdvisor.
Katie Stockton, founder of Fairlead Strategies, broke down the Airbnb chart for CNBC’s “Trading Nation” on Thursday.
“It’s already on a medium-term uptrend, just with history going back to December, and with limited price history, we don’t really have a way of discerning how overbought the stocks are, but there are no real signs of upside exhaustion when we enter [Airbnb] merits, ”she said.
Airbnb is scheduled to report revenues for the first time as a publicly traded company on February 25. While Airbnb benefited from a consumer preference for vacation rentals over hotel chains during the pandemic, it has still suffered from lockdowns – analysts polled by FactSet expect a net loss of $ 8.42 per share for the quarter ended in late December.
“If you look at Expedia on the other hand, that upward trend still has a positive momentum across the time horizon and I’m not really one to fight that. But what I would say is that the risk reward isn’t technically great ., ‘Said Stockton.
She highlights a support band of USD 135 and resistance of USD 161, equal to its 2017 high. The stock closed at USD 149.91 on Thursday.
“That creates a bad balance between the downside and upside potential here in terms of those levels, so I don’t think it’s very attractive, especially now that the broader market is showing signs of near-term exhaustion,” she said.
Expedia’s next stock move hinges on how well its investments in its vacation rental brand Vrbo have paid off, according to Boris Schlossberg, director of FX strategy at BK Asset Management.
“The market is really betting on a very, very specific type of trip, which is that when we’re released from the pandemic, most of us either go to the beach or the lake. We don’t go to the cultural centers, the cities, the museums, the restaurants, the theaters … Airbnb excels in city centers and Vrbo excels much more in vacation destinations, ” said Schlossberg during the same interview.
Expedia generates 11% of its total revenue through Vrbo.
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