Market swings can be tough to stomach, and volatile stocks often experience exaggerated moves in both directions.
While many thrive during risk-on environments, many also struggle to maintain investor confidence when the ride gets bumpy.
As the Q1 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the consumer internet industry, including Expedia (NASDAQ:EXPE) and its peers.
(BPT) - According to a 2025 AARP survey, 73% of adults said that they were worried about rising prices, which was unchanged from the findings over the past two years of the survey. The current economic climate indeed has consumers feeling the impact of high prices, making everyday savings strategies more important than ever.
Mid-cap stocks often strike the right balance between having proven business models and market opportunities that can support $100 billion corporations.
However, they face intense competition from scaled industry giants and can be disrupted by new innovative players vying for a slice of the pie.
Expedia's first quarter results were met with a negative market reaction after the company missed Wall Street’s revenue expectations, despite outperforming on non-GAAP earnings per share and adjusted EBITDA. Management pointed to a softer U.S. travel market, particularly for inbound and domestic bookings, as a primary factor behind the revenue shortfall. CEO Ariane Gorin explained, “US demand was soft, driven by declining consumer sentiment and we saw pressure on key inbound US corridors.” While Expedia’s B2B and advertising segments delivered strong growth, the high concentration of U.S. business in its direct-to-consumer brands limited overall performance.
Expensive stocks often command premium valuations because the market thinks their business models are exceptional.
However, the downside is that high expectations are already baked into their prices, leaving little room for error if they stumble even slightly.
Travel stocks are primed for a comeback now that consumer sentiment is improving. Here are three stocks with the potential to outperform the rest of the year.
Generating cash is essential for any business, but not all cash-rich companies are great investments.
Some produce plenty of cash but fail to allocate it effectively, leading to missed opportunities.
Whether it be online shopping or social media, secular forces are propelling consumer internet businesses forward. But it’s not all sunshine and rainbows as consumer purchasing power can make or break demand.
This unpredictability is weighing on returns as the industry has posted a flat return over the past six months, close to the S&P 500’s performance.
Online travel agency Expedia (NASDAQ:EXPE) missed Wall Street’s revenue expectations in Q1 CY2025 as sales rose 3.4% year on year to $2.99 billion. Its non-GAAP profit of $0.47 per share was 31% above analysts’ consensus estimates.
A cash-heavy balance sheet is often a sign of strength, but not always.
Some companies avoid debt because they have weak business models, limited expansion opportunities, or inconsistent cash flow.
Expedia trades at $171.01 per share and has stayed right on track with the overall market, losing 7.4% over the last six months while the S&P 500 is down 2.5%. This was partly driven by its softer quarterly results and might have investors contemplating their next move.
