Shares of Expedia Group Inc. (NASDAQ:EXPE) soared on Friday after the travel website operator's revenue was above Wall Street forecasts, boosted by larger-than-expected bookings volume.
Expedia shares jumped nearly 11% to US$118.
For the quarter ended March 31, Expedia announced Thursday that it lost US$0.46 per share, a loss that was US$0.01 a share smaller than consensus estimates. It’s also worth noting, that Expedia reported an adjusted loss of US$0.36 per share in the first quarter, excluding its subsidiary Trivago, which reports earnings separately.
The travel website operator's revenue was above forecasts, helped by larger-than-expected bookings volume. Revenue rose 15% to US$2.5bn, ahead of estimates for US$2.4bn. Gross bookings increased 15% to US$27.2bn, compared to expectations for US$26.7bn.
In a note to investors seen by Market Watch, Piper Jaffrey hiked the Expedia stock price to US$135.
"Expedia has finally reached a point where visibility has improved relative to both top line trends and ongoing spending initiatives," wrote Piper Jaffray analyst Michael Olson.
Market Watch reported that Expedia plans to add "twice as much inventory in 2018 as it added in 2017" and will also "spend up on marketing" for several of its platforms.
"Despite this high level of spend, Expedia maintained FY18 EBITDA guidance and early signs are that the investments the company is making are driving growth," Olson wrote .