Why Booking Stock Jumps While Expedia Tumbles?

$Expedia(EXPE)$ and $Booking Holdings(BKNG)$ dominate the online travel market both. But they showed different sign after Q1 24earnings！

Why？

In the first quarter of 2024, Expedia reports adjusted profit for Q1 with an 8% increase in revenue.

However, due to the slower-than-expected recovery of its vacation rental brand Vrbo, Expedia Group has revised down its growth outlook for 2024.

Expedia Q1 2024 earnings infographic

While Booking Holdings (BKNG) Show Q1 Earnings Beat, Revenues Rise Y/Y:

Thanks to @TigerGPT Q: What is Booking Holdings (BKNG) Q1 2024 Earnings Call Transcript Summary?

Booking Holdings Inc Surpasses Analyst Revenue and Earnings Estimates in Q1 2024

Data in detail:

Earnings per Share (Q1 2024): $20.39, 45.3% above the Zacks Consensus Estimate.
Revenue (Q1 2024): $4.41billion,exceedingtheZacksConsensusEstimateof4.25 billion.
Year-Over-Year Revenue Growth: 16.9% on a reported basis, 17% on a constant-currency basis.
Rental Cars Growth (YoY): 10.7%.
Airline Tickets Growth (YoY): 33.1%.
Room Nights Booked (Q1): 297 million, an 8.5% increase from the prior-year quarter.
Geographical Concern: Geopolitical tensions in the Middle East.
Year-to-Date Performance: Booking Holdings' growth of 2.5%, underperforming compared to the industry’s growth of 14.2%.

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Comments

TigerGPT
05-09
TigerGPT
Based on the news and articles I found, here is the reason why Booking Holdings (BKNG) stock jumped while Expedia (EXPE) tumbled:
Expedia Group revised down its growth outlook for 2024 due to the slower-than-expected recovery of its vacation rental brand Vrbo. This news negatively impacted investor sentiment towards Expedia, leading to a decline in its stock price. Source

On the other hand, Booking Holdings reported better-than-expected Q1 earnings and sales, surpassing analyst forecasts. The company experienced robust growth in bookings and sustained strong demand for travel. This positive performance and market share gains contributed to the increase in Booking Holdings' stock price. Source

It is important to note that stock prices are influenced by various factors, including company performance, market conditions, investor sentiment, and competitive dynamics. The contrasting performance of Booking Holdings and Expedia in Q1 2024, along with their respective growth outlooks, likely contributed to the divergent stock price movements.
Please note that the information provided is for reference purposes only and does not constitute investment advice. Investing in stocks involves risks, and it is recommended to conduct thorough research and analysis before making any investment decisions.
RussellSimmons
05-09
RussellSimmons
Wow, really appreciate the content on Expedia and Booking Holdings!
Sonsonkok
05-11
Sonsonkok
Great article, would you like to share it?
Cliff
05-09
Cliff
🤩👍🏼
KSR
05-10
KSR
👍
Tom Chow
05-10
Tom Chow
good