|Bid||31.73 x 1300|
|Ask||31.74 x 900|
|Day's Range||31.33 - 32.01|
|52 Week Range||25.00 - 51.91|
|Beta (3Y Monthly)||0.85|
|PE Ratio (TTM)||44.35|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
Just as overseas luxury stores have hired Mandarin-speaking staff to serve Chinese tourists, more tourist destinations may feel the need to accept Chinese mobile payment such as Alipay and WeChat Pay. Three-fourths of supermarkets and convenience stores in Singapore, Malaysia and Thailand now accept Chinese mobile payment, according to a Nielsen survey released Monday in cooperation with Alipay.
Goldman Upgrades Expedia’s Rating, Sees ~24% Upside in the Stock (Continued from Prior Part) ## Analysts’ expectations Wall Street analysts expect Expedia (EXPE) to continue benefiting from a healthy travel demand environment. The online travel agency’s three consecutive quarters of better-than-expected results have increased analysts’ confidence in its stock. Analysts expect Expedia’s fourth-quarter revenue to rise 9.7% YoY to $2.54 billion. By segment, its Core OTA sales are expected to grow 8.7% to $2.02 billion, its Egencia sales are expected to rise 9.8% to $150.5 million, and its HomeAway sales are expected to increase 29.4% to $249.7 million. However, analysts expect Trivago’s revenue to fall 8.4% to $197 million. For 2018, Expedia’s consolidated sales are expected to rise 11.4% YoY to $11.2 billion. Revenues in its Core OTA, Egencia, and HomeAway segments are expected to grow 14.2%, 14.5%, and 31.2%, respectively. Trivago’s sales are likely to fall 9.4% YoY. ## EBITDA estimates In the fourth quarter, Expedia’s adjusted EBITDA are expected to rise 5.1% YoY to $422.9 million. Its adjusted EBITDA margin is expected to contract 70 basis points to 16.7%. For 2018, analysts expect Expedia’s adjusted EBITDA to rise 11.8% YoY to $1.92 billion. The company’s management has also raised its full-year EBITDA growth guidance range to 10%–12% from the previous range of 7%–12%. For 2018, analysts expect the company’s EBITDA margin to expand ten basis points YoY to 17.1%. ## Earnings estimate Expedia’s non-GAAP (generally accepted accounting principles) EPS are expected to rise 28.6% YoY to $1.08 in the fourth quarter from $0.84 in the fourth quarter of 2017. For 2018, its non-GAAP EPS are expected to rise 31.2% YoY to $5.64. Booking Holdings (BKNG), TripAdvisor (TRIP), and Ctrip.com International (CTRP) are projected to report EPS rises of 16.6%, 67.6%, and 10.9% YoY, respectively, in 2018. Investors can gain exposure to Expedia via the SPDR S&P Internet ETF (XWEB), which has allocated ~2.5% of its funds in the stock. Browse this series on Market Realist: * Part 1 - Goldman Upgrades Expedia’s Rating, Sees ~24% Upside in the Stock * Part 2 - Expedia to Benefit from Rising Online Travel Demand * Part 3 - What’s Driving Wall Street’s Bullish Stance on Expedia Stock?
Expedia (EXPE) could be an intriguing investment choice, according to Wall Street analysts’ latest ratings. Of the 33 analysts covering EXPE, 23 have recommended a “strong buy” or “buy,” and the remaining ten have recommended a “hold.” Given Wall Street’s one-year forward price target of $147.48, the stock has an upside potential of 30.4% from its current market price of $113.09. Expedia’s back-to-back quarters of strong bottom-line results have instilled confidence in the stock.
Goldman Upgrades Expedia’s Rating, Sees ~24% Upside in the Stock (Continued from Prior Part) ## Rising online travel demand With the technological advancements, the dynamics of the travel industry have drastically changed over the past decade. Travelers are now moving to online travel booking agencies rather than traditional ones. In the past few years, online travel booking agencies have gained significant momentum due to increased mobile and Internet penetration around the world. Travelers can now more easily book their hotel rooms, train and flight tickets, rental cars, and vacation spots from anywhere just by signing in to an e-commerce travel site. Travelers can check the reliability of booking sites by checking their ratings and reviews. Users can also compare the prices of hotels and flights on various booking platforms. Apart from this, online platforms usually offer numerous deals on bookings, which is an added advantage for travelers. Statista expects global digital travel sales to reach $817.5 billion by 2020 from $629.81 billion in 2017. According to the latest data from Technavio, the global online booking platform is projected to increase at a CAGR (compound annual growth rate) of 11% from 2018 to 2022. The global travel industry is also expected to grow by 12% from 2017 to 2023. ## Expedia is poised to capitalize Expedia (EXPE) is one of the leading online travel booking agencies that has relationships with over 200,000 hotel owners across 200 countries. The company offers more than 300 packages for airline, car, cruise, and other travel bookings. With such a massive product portfolio and partnerships, Expedia is well positioned to capitalize on the growth opportunities in the travel industry. Further, the company’s sustained focus on technical enhancements should help it snag more market share. With the aim of easing the booking process for its users, Expedia is currently working on incorporating AI technology into its online travel business. The integration of AI technology could enable users to book or cancel flights and hotel reservations with voice commands on Alphabet’s (GOOGL) Google Assistant from any device. Also, users will be able to access information about their Expedia trip itineraries as well as packing lists for upcoming trips with a simple voice command. With a market cap of $79.6 billion, Booking Holdings (BKNG) is the biggest player in the online travel booking space, followed by Expedia’s $16.8 billion, Ctrip.com International’s (CTRP) $15.6 billion, and TripAdvisor’s (TRIP) $7.4 billion. Those who want exposure to Expedia stock may also invest in Amplify Online Retail (IBUY), which allocates 3.3% of its funds to the stock. Continue to Next Part Browse this series on Market Realist: * Part 1 - Goldman Upgrades Expedia’s Rating, Sees ~24% Upside in the Stock * Part 3 - What’s Driving Wall Street’s Bullish Stance on Expedia Stock? * Part 4 - What Analysts Expect from Expedia’s Q4 Top and Bottom Line
Goldman Upgrades Expedia’s Rating, Sees ~24% Upside in the Stock ## Goldman upgrades rating on Expedia Goldman Sachs (GS) analyst Heath Terry upgraded his rating on Expedia (EXPE) to “buy” from “neutral.” Terry also raised his one-year target price on Expedia to $140 from $125, which represents an upside of ~24% from last Friday’s closing price of $113.09. The analyst noted that the online travel agency is currently trading at a low valuation multiple, and given its growth potential, the stock is poised to gain significantly in 2019. In a note to clients, Terry wrote, “We believe we have seen evidence of this during recent periods where Expedia was able to drive bookings growth acceleration alongside leverage in ad spend,” CNBC reported. He added, “We also believe the stock’s relatively low trading multiple means it is likely to outperform in a tougher market environment for growth stocks.” Terry said that Expedia is poised to benefit from healthy travel demand and a tight supply environment. He also believes that TripAdvisor (TRIP) and Booking Holdings’ (BKNG) strategy of rationalizing ad spending puts Expedia in a better position. Additionally, Terry believes that consumer discretionary spending preferences are continuously shifting toward traveling, which should also benefit Expedia. ## Valuation multiple Currently, Expedia’s PE multiple stands at 20.90x. At its current multiple, the stock is trading at a premium valuation to its peers Booking Holdings and Ctrip.com International (CTRP) and at a discount to TripAdvisor. Booking Holdings, Ctrip, and TripAdvisor have PE multiples of 19.67x, 19.19x, and 36.19x, respectively. Based on analysts’ earnings forecast for the next 12 months, Expedia is trading at a hefty discount to TripAdvisor and Ctrip.com, while at a premium to Booking Holdings. Expedia, Booking Holdings, Ctrip, and Trip Advisor have forward PE multiples of 16.96x, 16.64x, 23.71x, and 28.28x, respectively. The PE multiple is widely used because of its simplicity, but it has some flaws. Earnings can be manipulated easily, which can make the multiple meaningless. Let’s compare these companies based on their EV-to-EBITDA (enterprise value-to-EBITDA) multiples. Currently, Expedia has an EV-to-EBITDA multiple of 11.16x, which is lower than those of its peers. Booking Holdings, Ctrip, and TripAdvisor have EV-to-EBITDA multiples of 14.44x, 36.14x, and 23.80x, respectively. Based on forward EV-to-EBITDA multiples, Expedia is trading at a hefty discount to its competitors. Expedia, Booking Holdings, Ctrip, and TripAdvisor have EV-to-EBITDA multiples of 8.66x, 12.88x, 17.89x, and 14.68x, respectively. Expedia makes up ~2.5% of the SPDR S&P Internet ETF (XWEB). Continue to Next Part Browse this series on Market Realist: * Part 2 - Expedia to Benefit from Rising Online Travel Demand * Part 3 - What’s Driving Wall Street’s Bullish Stance on Expedia Stock? * Part 4 - What Analysts Expect from Expedia’s Q4 Top and Bottom Line
Will TripAdvisor Stock Keep Its Momentum Alive in 2019? (Continued from Prior Part) ## Analysts’ expectations Wall Street analysts expect TripAdvisor’s (TRIP) fourth-quarter results to benefit from the healthy travel demand environment. Better-than-expected bottom-line results for three consecutive quarters increased analysts’ confidence in the stock. Analysts expect the fourth-quarter revenues to increase 6.9% YoY to $343.1 million. Segment-wise, the hotel and non-hotel revenues are expected to increase 1.8% and 25.7%, respectively, to $248.3 million and $96.8 million. The company also expects YoY growth in its consolidated, hotel, and non-hotel revenues in the fourth quarter. For 2018, the sales will likely increase 4.1% YoY to $1.61 billion due to a 24.7% growth expected in the Non-Hotel segment. The growth is expected to be partially offset by a 2.7% decline in the Hotel segment. ## EBITDA estimates For the fourth quarter, TripAdvisor’s adjusted EBITDA is expected to grow 27% YoY to $80 million. The adjusted EBITDA margin is expected to improve by 370 basis points to 23.3%. Segment-wise, the hotel and non-hotel adjusted EBITDA are expected to be $67.4 million and $8.2 million. For 2018, analysts expect TripAdvisor’s adjusted EBITDA to increase 25% YoY to $413.7 million. Analysts’ projections are in-line with the company’s mid-twenties percent range growth expectations. Analysts’ 2018 EBITDA estimates depict margin expansion of 440 basis points to 25.7%. ## Earnings estimate The non-GAAP EPS is expected to increase five-fold to $0.30 in the fourth quarter from $0.06 reported in the fourth quarter of 2017. For 2018, the non-GAAP EPS is expected to rise ~68% YoY to $1.71. Booking Holdings (BKNG), Expedia Group (EXPE), and Ctrip.com International (CTRP) are projected to report growth of 16.4%, 30%, and 21.9% YoY, respectively, in their 2018 EPS. Investors could gain exposure to TripAdvisor by investing in the SPDR S&P Internet ETF (XWEB), which has allocated 2.3% of its funds in the stock. Browse this series on Market Realist: * Part 1 - TripAdvisor in 2018: Fourth-Best Performer in the S&P 500 * Part 2 - Non-Hotel Segment: TripAdvisor’s Key Revenue Growth Driver * Part 3 - What Could Drive TripAdvisor’s User Base?
Will TripAdvisor Stock Keep Its Momentum Alive in 2019? (Continued from Prior Part) ## Unique visitors TripAdvisor’s (TRIP) strong effort toward improving its user base through marketing initiatives and continuously enhancing its mobile-centric product design has been attracting new users. The online travel agency’s average monthly unique visitors grew 8% YoY (year-over-year) to 490 million users in the third quarter. The unique visitor growth averaged 10% in the first three quarters of 2018. In the third quarter, user reviews on the company’s website grew 23% YoY to 702 million reviews. The growth helped TripAdvisor create brand awareness and drive users to its website. TripAdvisor managed to report YoY growth for the revenue per shopper metric for the first time in the last 13 quarters. The metric improved 5% YoY to $0.41 due to mobile device monetization. During the third quarter, desktop and tablet devices drove 10% of the revenue per hotel shopper growth, while mobile devices contributed 25% of the growth. TripAdvisor’s efforts toward enhancing mobile-centric product design and test-and-learn velocity led to a 40% increase in mobile click-based revenues. Mobile hotel shoppers increased 12% in the third quarter and contributed 50% of the total hotel shoppers for the first time in the company’s history. ## What’s ahead? TripAdvisor’s unique visitors are expected to continue to grow as more users shift to booking travel online and on mobile devices. For the next few quarters, the company’s management will focus on increasing the revenue per hotel shopper, which is a critical business metric. The company expects revenue per hotel shopper growth and click-based revenue growth to improve in the fourth quarter—compared to the third quarter. Investors could gain exposure to TripAdvisor by investing in the First Trust Dow Jones Internet ETF (FDN), which has allocated 1.6% of its funds in the company. FDN has invested 2.5% of its funds in Expedia (EXPE) stock. FDN doesn’t have any holdings in Trivago N.V. (TRVG) or Ctrip.com International (CTRP). Continue to Next Part Browse this series on Market Realist: * Part 1 - TripAdvisor in 2018: Fourth-Best Performer in the S&P 500 * Part 2 - Non-Hotel Segment: TripAdvisor’s Key Revenue Growth Driver * Part 4 - TripAdvisor’s Top and Bottom Line: Analysts’ Expectations
Will TripAdvisor Stock Keep Its Momentum Alive in 2019? TripAdvisor (TRIP) is one of the well-known travel sites globally. In the last few years, the company has been focusing more on its non-hotel businesses to drive its revenues and margins.
Does the January share price for Ctrip.com International, Ltd. (NASDAQ:CTRP) reflect it's really worth? Today, I will calculate the stock's intrinsic value by taking the expected future cash flows and Read More...
It was the most successful in a series of acquisitions that also included booking site Agoda and travel search engine Kayak that has helped the company’s stock climb for years. Close to 90% of Booking’s profit now comes from outside the U.S. Over the past year, the Norwalk, Conn., company has spent nearly $1 billion on Chinese tech companies, including ride-hailing giant Didi Chuxing Technology Co. and Meituan Dianping, whose all-in-one app lets hundreds of millions of users post restaurant reviews, buy movie tickets and book rides, food delivery or hotel rooms. The spending adds to nearly $1.3 billion of investments that Booking previously made in its top Chinese rival, online travel agency Ctrip.com.
Various fears from interest rates to slowing economic growth, concerns about the FAANG stocks and slumping oil prices have all played a role. Arguably, however, the central concern has been escalations in the so-called trade war between China and the United States. This is causing a great deal of concern for the companies that are most exposed to China or international trade.
Because of the massive amount of capital they manage (over $3 trillion), hedge funds’ collective buying and selling activity can have a significant effect on the direction of the overall market as well as that of individual stocks. Heading into the market turmoil of Q4, equity hedge funds’ exposure to the S&P 500 was at […]
Amid an overall market correction, many stocks that smart money investors were collectively bullish on tanked during the fourth quarter. Among them, Amazon and Netflix ranked among the top 30 picks and both lost around 20%. Facebook, which was the second most popular stock, lost 14% amid uncertainty regarding the interest rates and tech valuations. […]
Smart hotels in China will have facial recognition to check in, smart keys on phones to switch on appliances, and other robotic technology, predicts Jane Sun, CEO of online travel agency CTrip. The Chinese are willing to try new things and young people will be excited to see a "Star Wars" kind of futuristic theme designed into hotels, Sun says. Smart hotels in China will use robots to carry luggage, install facial recognition for easier check-ins, and use smart keys on phones to turn on air conditioning, predicts Jane Sun, CEO of CTrip, one of China's largest online travel services company.
The travel company had 63.3 billion yuan ($9.1 billion) in cash and cash equivalents as of Sept. 30, 2018. “The market is cooling down a lot,” Ms. Wang said. The company plans to offer more packaged deals consisting of flights, train tickets and hotel nights both inside and outside of China, said Ms. Wang.
Below is the transcript of a CNBC interview with Jane Sun, CEO, CTrip and CNBC's Geoff Cutmore. The interview took place at CNBC's inaugural tech conference, East Tech West, in Nansha, Guangzhou.
The rationale behind the selloff in China stocks is pretty straightforward. The China economy has been flashing warning signs of cooling off for several months, while the U.S. dollar has concurrently strengthened. Amid this economic slowdown and U.S. dollar uptick, U.S. and China trade tensions have not improved, and the probability of bigger and more wide-sweeping tariffs coming in 2019 is now quite high.
Dec.10 -- Ctrip co-founder and Executive Chairman James Liang says U.S.-China trade tensions will have a "temporary" negative impact on China tourism and travel. He speaks with Bloomberg's Selina Wang in an exclusive interview from Shanghai, China.
Nov.29 -- As the U.S. President Donald Trump and Chinese President Xi Jingping prepare to meet in Buenos Aires this weekend, CEO of Chinese online travel agent Ctrip, Jane Sun, weighs in on the impact the rising tension has on the tourism sector. She exclusively spoke to Bloomberg's China Correspondent Tom Mackenzie on the sidelines of Fortune Global Tech Forum in Guangzhou, China.