Expedia Group Shares Surge After Earnings Beat Estimates
Expedia Group (EXPE) shares experienced a sharp increase ahead of Friday’s opening bell following the online travel company’s impressive earnings report. The company’s earnings exceeded expectations, driven by robust demand in international markets. This positive news has set the stock up for a potential double bottom formation, as the May and August lows are in close proximity. As the stock continues to rise, investors should keep an eye on key price levels at $130, $140, and $155.
Expedia Group reported earnings that surpassed estimates, despite cautioning about a more challenging macro environment and softening travel demand in July. This sentiment aligns with other industry players such as Booking Holdings (BKNG), TripAdvisor (TRIP), and Airbnb (ABNB), who have also warned about moderating U.S. travel demand. However, these companies attribute the slowdown to trends normalizing after a post-pandemic boom. Expedia’s CEO, Ariane Gorin, highlighted the ongoing strength in international markets during the earnings call, which could contribute to the stock’s pre-market trade boost.
Ahead of the opening bell, Expedia shares were up 9.7% at $129.40.
Analyzing the price action on Expedia’s chart, it is worth noting the potential double bottom formation. After a death cross pattern appeared on the chart in late May, the shares initially defied the downtrend and staged a six-week countertrend rally above the 200-day moving average. However, most of those gains were given up in recent weeks leading up to the quarterly results. The better-than-expected earnings now provide an opportunity for the stock to rebound and potentially form a double bottom, given the proximity of the May and August lows.
Following the earnings announcement, there are three important price levels to watch for in Expedia shares. The first level is at $130, where the stock may encounter resistance from a trendline connecting several pre- and post-gap trading levels between February and July. This level also aligns closely with the 200-day moving average, which has exerted selling pressure since late June.
If buying momentum continues, the stock could move up to the $140 region, where it may face resistance from a horizontal line connecting multiple local peaks between December and April, as well as the prominent July swing high. Interestingly, this area also aligns with a price target derived from a bars pattern, which positions the bullish move from late May to mid-July from this month’s low.
Finally, if the uptrend persists, the stock could reach $155, where it would likely encounter resistance near three minor peaks that formed on the chart between December and January.
It is important to note that the comments, opinions, and analyses expressed in this article are for informational purposes only. Investors should conduct their own research and analysis before making any investment decisions.
In conclusion, Expedia Group’s shares have surged after reporting earnings that exceeded estimates. The potential double bottom formation and the key price levels at $130, $140, and $155 are important factors to watch as the stock continues to rise. Investors should stay informed and monitor these developments closely.
Disclaimer: The author does not own any of the securities mentioned in this article.
