EXPE

Expedia Inc

TMT, Consumer


Presented:03/05/2018
Price:$107.66
Cap:$16.79B
Current Price:$151.20
Cap:$19.68B

Presented

Date03/05/2018
Price$107.66
Market Cap$16.79B
Ent Value$21.17B
P/E Ratio45.43x
Book Value$29.80
Div Yield0.52%
Shares O/S155.97M
Ave Daily Vol2,443,842
Short Int10.26%

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: Booking Holdings Inc (BKNG), Expedia Inc (EXPE), Trivago NV (TRVG)

Highlights

The presenter is long shares of Expedia (EXPE), seeing a favorable risk/reward setup with underappreciated upside due to how negative sentiment has turned on the stock. In his opinion, shares have bottomed, and any further downside risk is limited. The recent weakness appears to be a result of new CEO Mark Okerstrom shifting to a long-term investment and growth strategy, away from ex-CEO Dara Khosrowshahi’s more quarterly/ managed approach. The presenter makes a case for EXPE shares to trade up to $200 on the basis of 12x 2020 EBITDA.

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Idea Discussion

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