Booking and Airbnb recently reported better-than-expected results for the last quarter.
Expedia Group (EXPE) shares surged over 17% in extended trading on Thursday, among the highest in the S&P 500, after the travel booking company raised its full-year target.
If the after-hours gains carry over into Friday, the stock could be on its way to its best session in four months.
Expedia said its upgraded outlook, coming on the heels of stronger-than-expected Q2 results, is driven by a sharp rebound in business travel demand alongside a modest recovery among U.S. consumers.
Booking Holdings (BKNG) and Airbnb (ABNB) also reported better-than-expected quarterly results recently, although both companies offered cautious outlooks. Broadly, online travel companies are seeing a rebound in activity, driven by international travel, with U.S. demand showing signs of improvement beginning in July.
“Outside of the U.S., the market was quite healthy. Inside the U.S., it was softer,” Expedia CEO Ariane Gorin told Bloomberg in an interview.
“There was a bit of a bifurcation between travelers at the high end of the market that were still traveling, and then at the lower end of the market, where there was a bit more of wait and see.”
On Stocktwits, the retail sentiment for Expedia shifted to ‘extremely bullish’ as of late Thursday, from ‘neutral’ the previous day, with message volume rising 2,300% in the past 24 hours.
“Buy all you can, forward guidance is rocking!” a user said.
However, a few users also cautioned that the stock might not sustain the gains in Friday’s session, comparing it to a similar move in DoorDash’s shares this week.
According to another user, the adjusted EPS beat was modest, while GAAP EPS actually declined, raising doubts over whether the after-hours share move is justified.
On Thursday, Expedia said it now expects 2025 revenue to rise 3% to 5%, up from its previous forecast of 2% to 4% growth. The company similarly raised its guidance for gross bookings growth to the same 3% to 5% window.
In the second quarter, revenue rose 6% to $3.79 billion, beating estimates of $3.71 billion. Adjusted profit came in at $4.24 per share, also above expectations of $3.97.
As of their last close, Expedia shares are up 0.7% year-to-date.
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