Expedia Stock Dips as Cancelations Hurt Q4 Results

Options traders are chiming in after earnings, too

Digital Content Manager
Feb 10, 2023 at 11:00 AM
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The shares of Expedia Group Inc (NASDAQ:EXPE) are down 6.2% to trade at $110.40 at last check, after the travel company's fourth-quarter earnings and revenue missed analysts' estimates. Severe winter weather brought on a spike in canceled bookings, though travel demand remains strong.

Analysts are doling out bull notes, despite this quarterly miss. At least nine firms hiked their price targets, including Evercore ISI to $150 from $142. Meanwhile, Credit Suisse slashed its objective to $174 from $176. The stock's 12-month consensus target price of $131.37 is now an 18.6% premium to current levels.

Overall options volume is running at five times the intraday average, with 3,588 calls and 5,688 puts across the tape so far today. The weekly 2/10 110-strike put is the most popular, with the 104-strike put not trailing far behind, with both expected to expire after today's close.

Short-term options traders have been more bearish than usual. This is per Expedia stock's Schaeffer's put/call open interest ratio (SOIR) of 1.44, which is higher than 95% of readings from the past year. 

The $125 region rejected the security's latest rally, but the 200-day moving average looks poised to contain today's pullback. The shares had been bouncing off a Dec. 22, more than two-year low of $82.39, and are down 44.2% year-over-year.


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