Expedia's Stock Surges 33% in 2024 Amid Strong Growth

Expedia's stock has outperformed the S&P 500, rising 33% in 2024. Key growth drivers include a boost in travel trends and robust B2B demand. Financial highlights indicate strong earnings per share and revenue growth, making it a compelling choice for investors.

Date: 19-02-2025

AI Rating: 7

Stock Performance
Expedia's stock has shown impressive performance, increasing by 33% since the start of 2024, significantly outperforming the S&P 500’s 27% growth during the same period. This performance signals strong investor confidence in the company's future prospects.

Revenue Growth
In 2024, Expedia's full-year revenue reached $13.7 billion, marking a 7% increase year-over-year (y-o-y). This growth reflects robust corporate partnerships, particularly in the B2B sector, which saw a 21% increase in revenue, contributing $4.1 billion. The travel resurgence, especially in the U.S. and Asia-Pacific, underpins this growth.

Earnings Per Share (EPS)
Financial highlights show a remarkable 69% increase in diluted earnings, bringing EPS to $8.95. For adjusted earnings, there was a 25% y-o-y growth, resulting in $12.11 per share. This significant leap in EPS is a strong indicator of the company's effective operational strategies and financial health.

Future Projections
Looking ahead, Expedia anticipates 4-6% growth in gross bookings and revenue for 2025, alongside an expected EBITDA margin expansion of 50 basis points. These projections suggest continued positive momentum, underlined by favorable travel conditions and enhanced business models.

Market Comparisons
While Expedia has excelled, its peer Tripadvisor has seen a decline of 18% during the same period, emphasizing the competitive edge that Expedia possesses through its growth strategy and product enhancements, notably the Vrbo platform.

Investment Sentiment
The reinstatement of a quarterly dividend at $0.40 per share has further bolstered investor sentiment, contributing to the recent surge in stock price. Moreover, strategic investments in technology and customer loyalty initiatives are expected to enhance long-term shareholder value.

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