The company's stock is in a slump, but it's still hanging around $94.
The company's stock has dropped by nearly 8% over the past 21 trading days, and is currently hovering around $94.
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Expedia (NASDAQ: EXPE) is a travel company that provides everything from airline tickets to hotel rooms and car rentals. The company's stock has declined by almost 8% over the last twenty-one trading days (one month) and currently stands at around $94. The primary reason for this decline is a combination of high inflation, rising interest rates, and slowing economic growth pressuring consumer spending. However, the travel company saw a beat on both the top and bottom lines in the last fiscal Q2. In Q2, EXPE's adjusted EPS of $1.96 beat expectations by $0.40, reversing last year's loss of -$1.13. The company's revenue soared 51% year-over-year to $3.2 billion, topping estimates by $190 million. Last year, the same period was hit by more severe pandemic disruptions. Despite that, this quarter was solid from a variety of perspectives. Expedia's Average Daily Rates (ADR's) increased by 9% over the second quarter of 2021. Air travel services, the company's smallest segment, also saw a 21% increase in revenue per ticket. That said, a topline contribution of $648 million contributed to an adjusted EBITDA of $647 million, nearly tripling from $201 million last year and 14% higher than in Q2 2019. Looking ahead, Expedia's strong second quarter results show that the company is well-positioned to weather the current headwinds. With a strong balance sheet and a robust business model, Expedia is well-positioned to continue driving growth in the years to come.
Expedia's strong balance sheet is a positive sign for the company's future. With cash and equivalents totaling over $5 billion and long-term debt of $6.7 billion, Expedia is in a good position to weather any storms that may come its way. The company has already paid down $1 billion in debt this year, and is expected to generate strong cash flow in the third quarter. This is good news for investors and indicates that Expedia is a company with a bright future.
There is a 65% chance that EXPE stock will rise in the next month, according to our machine learning analysis. This is based on trends in the stock price over the last ten years. For more details, see our analysis of EXPE’s Stock Chance Of Rise.
The calculation of event probability and chance of rising using data from the last ten years is a powerful tool that can help us understand the likelihood of future events.
Returns of 2.4% or higher over a five-day period on 828 occasions out of 2516 (33%); Stock rose in the next five days in 405 of these 828 instances (49%) This suggests that there is a good chance that the stock will continue to rise in the next five days, especially if it has already risen over the last five days.
It is clear that stock market crashes are not uncommon. What is less clear is what happens after a crash. Do prices always rebound? According to the data, it seems that prices have a 50/50 chance of rebounding after a crash. This data should give investors some comfort knowing that their investment may not be lost after a market crash.
The stock market is a volatile place, and while a dip of -8.2% or lower may seem like cause for alarm, history has shown that there is a 65% chance that the stock will rebound within the next twenty-one days. So, while there is always some risk involved in investing, it may be worth holding onto your stocks during a short-term dip.
It is helpful to see how a company's peers stack up. This allows investors to see how a company is performing relative to its competitors. The Trefis platform provides peer comparisons for companies across industries. This is a valuable tool for investors as it allows them to see how a company is performing on key metrics relative to its peers.
With inflation rising and the Fed raising interest rates, it's no surprise that EXPE stock has fallen almost 50% this year. However, some investors are wondering if the stock can drop even further. To get an idea of how low EXPE stock can go in a market crash, it's helpful to look at the stock's performance during previous market crashes. While there's no guarantee that history will repeat itself, this can give us a good idea of how much further the stock could fall. Overall, it's clear that EXPE stock is at risk of significant downside in a market crash. While the stock has fallen a lot already this year, there's still potential for it to drop even further.
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The Trefis Price Estimates dashboard is a great way to see the potential value of a company. By looking at the data, you can get a better understanding of how the market values a company.
