What Happened:
Shares of online travel agency Expedia (NASDAQ: EXPE) jumped 6.55% in the after-market session after the company posted first quarter revenue, gross bookings and earnings per share that exceeded analysts' expectations. Operating profits missed. Despite this, it was still a positive quarter, with management highlighting "strong travel demand" in the first quarter and enhanced performance driven by "greater testing velocity and accelerating deployment of AI and ML, including our recent integration of ChatGPT."
What is the market telling us:
Expedia's shares are quite volatile and over the last year have had 26 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.
Expedia is up 9.75% since the beginning of the year, but at $96.24 per share it is still trading 31% below its 52-week high of $139.50 from May 2022. Investors who bought $1,000 worth of Expedia's shares 5 years ago would now be looking at an investment worth $867.28.
Is now the time to buy Expedia? Access our full analysis of the earnings results here, it's free.