EXPE

Expedia Inc

TMT, Consumer


Presented:02/23/2016
Price:$104.16
Cap:$13.97B
Current Price:$151.20
Cap:$19.68B

Presented

Date02/23/2016
Price$104.16
Market Cap$13.97B
Ent Value$19.28B
P/E Ratio18.11x
Book Value$32.37
Div Yield0.92%
Shares O/S134.13M
Ave Daily Vol2,913,982
Short Int8.95%

Current

Price$151.20
Market Cap$19.68B
Expedia, Inc. is an online travel company. The company provides travel products and services to leisure and corporate travelers, including travel agencies, tour operators, travel supplier direct websites and call centers, consolidators and wholesalers of travel products and services, large online portals and search websites, certain travel meta-search websites, mobile travel applications, social media websites, as well as traditional consumer eCommerce and group buying websites. It also offers travel and non-travel advertisers access to a potential source of incremental traffic and transactions through its various media and advertising offerings on its transaction-based websites. The company operates through two business segments: Leisure and Egencia. The Leisure segment provides a full range of travel and advertising services to worldwide customers through a variety of brands including: Expedia.com and Hotels.com in the United States and localized Expedia and Hotels.com websites. The Egencia segment provides managed travel services to corporate customers in North America, Europe, and the Asia Pacific region. Expedia was founded on August 9, 2005 and is headquartered in Bellevue, WA.

Publicly traded companies mentioned herein: Expedia (EXPE), TripAdvisor Inc (TRIP)

Highlights

There is no shortage of controversy with Expedia (EXPE), said the presenter. He is long at present levels ($104) and thinks the owner of Travelocity, hotels.com, the Trivago search engine, and recently acquired Orbitz ($1.6 billion) and HomeAway ($3.9 billion) is well positioned in the market. The debate about macroeconomic sensitivity has driven Street downgrades recently, but both Expedia and Priceline have reported solid numbers. With EXPE down ~25% from recent highs in November 2015, the risk/ reward is favorable and looking out to 2017 and valuing the company on “more representative” numbers suggests there is upside to $150.

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