Expedia shares sink after 2024 revenue warning on softening air fares

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Shares of Expedia Group closed down 18% connected Friday, their biggest single-day driblet successful astir 4 years, aft nan online recreation firm said it expected 2024 gross maturation rates to mean arsenic aerial fares soften from post-pandemic highs.

The institution precocious connected Thursday besides said Chief Executive Officer Peter Kern would measurement down from his position and beryllium replaced by institution insider Ariane Gorin.

Expedia shares snapped a four-day winning streak and dragged down those of different recreation firms pursuing nan warning. Booking Holdings, Tripadvisor and Airbnb fell betwixt 1% and 4%.

"On a macro level, we expect recreation request to stay comparatively healthy, but we expect maturation rates crossed nan world to decelerate," outgoing CEO Kern said connected Expedia's net call.

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Air recreation gross was besides affected by nan grounding of Boeing's 737 Max 9 fleet, starring to aggregate cancellations impacting its Vrbo brand.

"Overall, we spot an 'acceleration story' that is decelerating pinch a CEO modulation now successful play; near-term setup looks challenging," Wells Fargo analysts wrote successful a note.

"On a macro level, we expect recreation request to stay comparatively healthy, but we expect maturation rates crossed nan world to decelerate," outgoing CEO Kern said connected Expedia's net call.

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Air recreation gross was besides affected by nan grounding of Boeing's 737 Max 9 fleet, starring to aggregate cancellations impacting its Vrbo brand.

"Overall, we spot an 'acceleration story' that is decelerating pinch a CEO modulation now successful play; near-term setup looks challenging," Wells Fargo analysts wrote successful a note.

The institution forecast its gross bookings maturation for nan existent 4th to beryllium successful nan low- to mid-single digits scope and said it expects gross maturation to beryllium successful nan mid-single digit.

"Expedia's first-quarter guidance whitethorn person underwhelmed investors, pinch gross maturation expected to beryllium successful nan mid-single digits scope compared to nan 9% statement estimate," CFRA expert Siye Desta said.

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However, nan institution reported a better-than-expected adjusted profit of $1.72 per stock connected nan backmost of resilient request during nan vacation season. Analysts connected mean had expected a profit of $1.68 per share, according to LSEG data.

Shares of Expedia waste and acquisition astir 12.35 times their guardant profit estimates, good beneath rival Booking's 21.04 multiple.