Expedia fell on Thursday after its 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. The loss of $ 2.64 per share was greater than the expected $ 1.94.
However, the company earned profits in return mode. Shares had risen 268% from their March low, reaching their highest level since 2017 on Thursday, even with the travel industry still struggling amid the coronavirus pandemic.
But, this performance is still evident compared to Airbnb. Since it went public on December 10, this stock has risen more than 200%. Airbnb’s $ 130 billion market cap is larger 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 is on a medium-term uptrend already with history up to December and, with a limited price history, we don’t really have any way of discerning the overbought of stocks, but there are no real signs of depletion in the rise as we enter [Airbnb] gains, ”she said.
Airbnb is expected to report earnings on February 25 for the first time as a listed company. Although during the pandemic, Airbnb has benefited from the preference of vacation rentals over hotel chains, it has still suffered blockages; analysts surveyed by FactSet forecast a net loss of $ 8.42 per share during the quarter ended December.
“If you look at Expedia on the other hand, this uptrend still has a positive momentum on the time horizons and I’m not really able to fight that. But what I would say is that the reward for risk is not great from a technical perspective. “Stockton said.
Highlights a support band at $ 135 and resistance at $ 161, with a high of 2017. Shares closed Thursday at $ 149.91.
“This creates a bad imbalance between the downside and the bullish potential here in terms of those levels, so I don’t think it’s very convincing, especially with the wider market showing some signs of short-term upside exhaustion. term, ”he said.
According to Boris Schlossberg, managing director of BK Asset Management’s FX strategy, Boris Schlossberg, Expedia’s next stock move, depends on the good result of its investments in its Vrbo holiday rental brand.
“The market is really committed to a very, very specific type of travel, that is, when we get rid of the pandemic, most of us will go to the beach or the lake. We will not go to cultural centers, cities, museums, restaurants, theaters … Airbnb excels in urban centers and Vrbo excels a lot more in holiday spots, ”Schlossberg said during the same interview.
Expedia generates 11% of its total revenue through Vrbo.
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