Investing.com — Expedia Inc (NASDAQ:)’s mixed Q3 results and guidance released Thursday point to ongoing tepid growth that will keep a lid on its earnings power in 2025, analysts at Deutsche Bank said in a Friday note.
While Expedia’s is likely to make a “modest improvement” in bookings and revenue growth and margin leverage in 2025, it likely be insufficient to ensure its multiple continue to move higher into 2025, the analysts said.
Ongoing tepid growth in the company’s B2C business, despite growing investments, meanwhile is also expected to weigh on “2025 earnings growth algorithm for the company” they added after downgrading Expedia to Hold from Buy.
Expedia’s Q3 bookings and adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, marginally beat of expectations, but revenue came in slightly below as B2C revenue declined 140 basis points year-over-year in Q3.
Direct marketing as a percentage of gross bookings, meanwhile, “continued to…
