Quarterly earnings results are a good time to check in on a company’s progress, especially compared to other peers in the same sector. Today we are looking at Expedia (NASDAQ:EXPE), and the best and worst performers in the consumer internet group.
The ways people shop, transport, communicate, learn and play are undergoing a tremendous, technology-enabled change. Consumer internet companies are playing a key role in lives being transformed, simplified and made more accessible.
The 17 consumer internet stocks we track reported a slower Q3; on average, revenues beat analyst consensus estimates by 1.41%, while on average next quarter revenue guidance was 3.9% under consensus. There has been a stampede out of high valuation technology stocks as rising interest rates encourage investors to value profits over growth again, but consumer internet stocks held their ground better than others, with the share prices up 9.33% since the previous earnings results, on average.
Originally founded as a part of Microsoft, Expedia (NASDAQ: EXPE) is one of the world’s leading online travel agencies.
Expedia reported revenues of $3.61 billion, up 22.1% year on year, in line with analyst expectations. Despite the stock dropping on the result, it was a decent quarter for the company, with growing number of users.
"The third quarter marked another period of robust travel demand despite the uncertain macroeconomic environment. We delivered strong financial performance with record quarterly revenue and adjusted EBITDA, which exceeded $1 billion for the first time. These results reflect our emphasis on driving topline growth while improving margins," said Peter Kern, Vice Chairman and CEO, Expedia Group.
The company reported 93.2 million room nights, up 19.7% year on year. The stock is up 17.6% since the results and currently trades at $103.1.
Is now the time to buy Expedia? Access our full analysis of the earnings results here, it's free.
Best Q3: Uber (NYSE:UBER)
Born out of a winter night thought: "What if you could request a ride from your phone?" Uber (NYSE: UBER) operates a global network of on demand services, most prominently ride hailing and food delivery, and freight.
Uber reported revenues of $8.34 billion, up 72.1% year on year, beating analyst expectations by 3.52%. It was a very strong quarter for the company, with exceptional revenue growth and a decent beat of analyst estimates.
Uber scored the fastest revenue growth among its peers. The company reported 124 million paying users, up 13.7% year on year. The stock is up 8.99% since the results and currently trades at $28.97.
Is now the time to buy Uber? Access our full analysis of the earnings results here, it's free.
Weakest Q3: Overstock (NASDAQ:OSTK)
Originally launched as a website focusing on selling clearance sale electronics and home goods merchandise, Overstock (NASDAQ: OSTK) is a leading online retailer of home goods, primarily furniture.
Overstock reported revenues of $460.2 million, down 33.2% year on year, missing analyst expectations by 2.66%. It was a weak quarter for the company, with declining number of users and revenue.
The company reported 5.8 million active buyers, down 33.3% year on year. The stock is down 15.3% since the results and currently trades at $21.69.
Founded by Joe Gebbia and Brian Chesky by renting out a blowup bed on the floor of their San Francisco apartment, Airbnb (NASDAQ: ABNB) is the world’s largest online marketplace for lodging, primarily homestays.
Airbnb reported revenues of $2.88 billion, up 28.9% year on year, beating analyst expectations by 1.26%. It was a mixed quarter for the company, with solid user growth but underwhelming revenue guidance for the next quarter.
The company reported 99.7 million nights booked, up 25% year on year. The stock is down 9.94% since the results and currently trades at $98.21.
Founded by a struggling amateur furniture maker Robert Kalin and his two friends, Etsy (NASDAQ: ETSY) is one of the world’s largest online marketplaces, focusing on handmade or vintage items.
Etsy reported revenues of $594.4 million, up 11.6% year on year, beating analyst expectations by 5.4%. It was a mixed quarter for the company, with a solid beat of analyst estimates but slow revenue growth.
The company reported 94.1 million active buyers, up 5.31% year on year. The stock is up 50.5% since the results and currently trades at $131.7.
The author has no position in any of the stocks mentioned