Expedia Plummets 9% After Weak Full-Year Guidance, Middle East and Mexico Warnings
EXPE•Expedia Group reported first-quarter bookings rose 13% year over year with earnings and revenue beating expectations. The stock plunged 9.2% after management cut full-year guidance and cited Middle East tensions and Mexico travel warnings denting current bookings.
1. Q1 Earnings Beat Expectations
Expedia reported first-quarter revenue and adjusted earnings above estimates, with total bookings up 13% year over year driven by robust leisure and business travel demand.
2. Weak Guidance Dents Investor Confidence
Management cut its full-year revenue and profit outlook, warning that Middle East geopolitical tensions and fresh travel warnings for Mexico are weighing on near-term bookings.
3. Options and Short Interest Activity
Investors piled into puts, sending the 10-day put/call ratio to 2.33 (92nd percentile) and quintuple average volume in 5/29 165-strike puts, while short interest climbed to 6% of float.
