ExpediaNASDAQ: EXPE

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Expedia (EXPE) experienced a significant rise in its stock price during the last trading session, with trading volume exceeding the usual amount. However, the recent changes in earnings estimates might not lead to additional price growth in the short term.

Expedia's lower valuation compared to Booking Holdings doesn't make sense, as EXPE is trading at a much lower price despite good growth and returns. Currently, EXPE shares are valued at 8.2 times cash earnings and have a PEG ratio of 0.5 based on 2025 estimates, which are below what most analysts expect. The expected cash earnings growth of 16% from 2025 to 2026 could generate $2 billion in free cash flow, representing 11% of its market value.

According to three sources who spoke to the Financial Times, the discussions are still in the early phases, and it is uncertain if Uber will buy Expedia, as Uber has not officially contacted them yet.

SEATTLE, Oct. 17, 2024 /PRNewswire/ -- Expedia Group (NASDAQ: EXPE) has named Ramana Thumu as its new Chief Technology Officer. In this role, Ramana will manage the technology team, focusing on engineering, data, artificial intelligence, cloud services, and security, while also leveraging the company's recent investments in technology and platforms.

On Thursday morning, shares of Expedia (EXPE) rose sharply, while Uber Technologies (UBER) saw a decline. This change in stock prices came after the Financial Times reported that Uber is considering buying the travel booking company.

Expedia's stock rose by 8%, while Uber's stock dropped over 3% in early trading on Thursday. According to The Financial Times, Uber has been in talks with advisors regarding a possible takeover in the past few months.

Acquiring the online travel company would provide Uber with new opportunities for growth by creating a potential super app. This would allow Uber to expand its services and reach more customers.

Recent B2B reports show that Expedia has a strong range of products. The stabilization of Vrbo bookings is also a positive factor. With a strong balance sheet, low valuation, and solid fundamentals, Expedia is a great investment choice.