EXPE - Expedia: Belt Tightening Will Offset Macro-Driven Vrbo Weakness

2024-06-23 10:09:01 ET

Summary

• Expedia's stock has taken a ~15% YTD hit as it lowered its guidance for the year, citing weakness at its home-sharing platform, Vrbo.
• The weakness in home-sharing platforms may be a broader industry trend, as seen in Airbnb's Q1 results.
• Expedia's hotel segment is performing well, indicating a shift in customer preferences towards hotels over home-sharing platforms.
• The company's recent layoffs covering 9% of its global staff will also help to push profitability higher.
• The stock trades at an attractive ~8x FY25 P/E multiple.

Expedia ( EXPE ) can't seem to catch a break. Despite a recent broad-market rally that breathed some fresh life into Expedia stock, the company is still dealing with a post-earnings overhang from reporting weakness at its vacation rental platform, Vrbo....

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