Stronger business travel found in 2018 will probably mean higher earnings for accommodations, airlines and car local rental providers, but online travel provider Expedia won’t be found in on the windfall.
Growth considerations have dogged Expedia throughout the year, and MKM Partners analyst Christopher Agnew says these problems aren’t likely to resolve themselves soon.
Shares of Expedia fell 1.6 percent in premarket trading; the inventory is certainly down 17 percent in the last three months.
“The inventory gapped down in October and has been struggling to even attempt to load that gap, an indication of weakness” wrote Agnew on Thursday. The analyst downgraded Expedia to neutral from acquire. The stock’s 200-working day moving average – an integral metric for Wall Street technical analysts – has begun to flatten out and is at threat of moving lower.
Expedia’s bookings were light found in the 3rd quarter as reported found in October. Gross bookings grew by about $2.1 billion, or 11 percent year-over-year, and overall nights stayed through all Expedia lodgings brands increased just 16 percent year-over-year.
The stock “has really shed momentum,” added Agnew, who includes a $115 estimate on Expedia shares, which is 3.5 percent lower than Wednesday’s closing price. While the outlook is certainly gloomy, the analyst noted that Expedia’s HomeAway, a primary Airbnb challenger, may benefit from strong leisure travel.