Expedia (EXPE) Offering Possible 13.9% Return Over the Next 6 Calendar Days

Expedia's most recent trend suggests a bearish bias. One trading opportunity on Expedia is a Bear Call Spread using a strike $172.50 short call and a strike $177.50 long call offers a potential 13.9% return on risk over the next 6 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $172.50 by expiration. The full premium credit of $0.61 would be kept by the premium seller. The risk of $4.39 would be incurred if the stock rose above the $177.50 long call strike price.

The 5-day moving average is moving up which suggests that the short-term momentum for Expedia is bullish and the probability of a rise in share price is higher if the stock starts trending.

The 20-day moving average is moving down which suggests that the medium-term momentum for Expedia is bearish.

The RSI indicator is at 37.99 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here


LATEST NEWS for Expedia

Airbnb Sees Signs of Rebound; Loss Widens on Debt Payment
Thu, 13 May 2021 23:15:46 +0000
(Bloomberg) — Airbnb Inc. beat analysts’ estimates for bookings in the first quarter, reflecting pent-up demand for travel after a year of Covid-19 restrictions. But the lingering effects of the pandemic could still be seen as the company’s loss ballooned, a result of repayment of debt it took on during the height of the crisis.The San Francisco-based company, which went public in December, reported $10.3 billion in gross bookings in the three months ended March 31, a 52% increase from the year earlier period and well beyond the $7.57 billion analysts’ had predicted. Revenue rose 5% to $887 million, also beating analyst’s projections.“While conditions aren’t yet normal, they are improving, and we expect a travel rebound unlike anything we have seen before,” the company wrote in a letter to shareholders accompanying the results. Airbnb didn’t release an official outlook for the current period, citing ongoing impacts of Covid-19, but said it expects gross bookings to be higher than 2019 levels and that April trends improved from March.“We were not expecting gross booking value to be quite as strong as it was,” Airbnb Chief Executive Officer Brian Chesky said in an interview on Bloomberg Television after the results were published. “We were expecting a strong quarter, but a travel company to actually grow in the midst of a pandemic that certainly was a pretty good scenario for us.”When people in the U.S. older than 60 became eligible for vaccinations earlier this year, Airbnb saw bookings for that age group jump 60%, Chesky said, adding the upcoming travel rebound will be “unlike anything you’ve seen in a century.”Airbnb’s shares fluctuated in extended trading after closing down 3.2% in New York at $135.75.The surprisingly positive results reflect a big upswing from a year ago, when Airbnb’s bookings plunged 80% after the coronavirus shut down most of the world. Travel was one of the hardest hit sectors of the economy in the pandemic, but Airbnb saw a swifter recovery than its peers when urbanites started abandoning their city apartments in favor of longer stays in rural rentals. Domestic leisure travel has continued to increase this year as vaccination rates have climbed in the U.S., with some analysts expecting Airbnb to see bookings return to pre-pandemic levels by summer. “We want to see if we are moving toward post-pandemic normalcy,” Ivan Feinseth, an analyst at Tigress Financial Partners, said in an interview before results were released.Prior to the pandemic, alternative accommodation, or non-hotel type lodgings that Airbnb specializes in, was already the fastest growing segment of the travel market and it’s now leading the rebound. Last week, Booking Holdings Inc. and Expedia Group Inc. reported better-than-expected first-quarter results, buoyed by vacation home-rental demand in the U.S. Both online travel agents said they would be trying to expand their property inventory in the U.S. to take on Airbnb in the peak summer season. Booking’s quarterly revenue declined 50% while Expedia’s was down 44% compared with a year earlier.Airbnb is fighting to retain its top position. In February, the company launched its biggest marketing campaign in five years in a bid to recruit more hosts and said it’s already driving new customers to its platform. Later this month, Airbnb will be unveiling a platform upgrade, which promises to streamline the process to become a host.Almost 60% of Airbnb’s revenue came from the U.S., where vaccines are now widely available, the company said. Guests are taking advantage of remote work policies and choosing to travel to non-urban areas and stay for longer: Nearly a quarter of Airbnb’s bookings in the first quarter were for stays longer than 28 days, an increase of 14% from 2019. Bookings in North America, primarily the U.S., increased to levels above 2019 in the first quarter, the company said.However, other countries are still struggling to contain Covid-19. India is reporting 4,000 deaths a day, meanwhile Europe’s vaccine rollout is lagging the U.S. and Australia has said its borders may be closed to international travelers for another year. As countries like the U.K. and France have announced reopenings and eased restrictions, Airbnb has seen a sharp increase in bookings, the company said. “We anticipate the pace of recovery in Europe will continue to be heavily influenced by the severity and duration of travel restrictions, but believe we are well positioned to take advantage of the recovery as they ease,” the company said.Releasing its financial results for the second time as a public company, Airbnb reported net loss of $1.17 billion, or $1.95 a share, significantly higher than the loss of $341 million a year earlier. Airbnb said it was due to the repayment of debt the company took on during the pandemic. In April 2020, Airbnb lined up about $2 billion in debt financing to help it grow and pay bills while travel demand was crushed.(Updates with comments from CEO beginning in the fourth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

Hopper launches new last-minute hotel booking feature ‘Stay The Night'
Wed, 12 May 2021 20:54:46 +0000
Fred Lalonde, Hopper CEO and co-founder, joined Yahoo Finance Live to dicuss the app's new feature and his outlook for the travel sector.

Marriott CEO: We are seeing a really strong rebound in leisure and business travel
Mon, 10 May 2021 15:49:40 +0000
Travel is on the mend, Marriott CEO Tony Capuano said on Yahoo Finance Live.

10 Best Summer Stocks to Buy Now
Mon, 10 May 2021 14:43:20 +0000
In this article, we will take a look at the 10 best summer stocks to buy now. You can skip our comprehensive analysis of these companies and go directly to the 5 Best Summer Stocks to Buy Now. The COVID-19 pandemic caused the cancellation of summer vacation plans in 2020. Travel destinations worldwide had 1 billion […]

Expedia (EXPE) Surges 5.2%: Is This an Indication of Further Gains?
Mon, 10 May 2021 12:08:12 +0000
Expedia (EXPE) saw its shares surge in the last session with trading volume being higher than average. The latest trend in earnings estimate revisions could translate into further price increase in the near term.

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