Wachiwit/iStock Editorial via Getty Images Since the start of the year, Expedia ( EXPE ) and Booking ( BKNG ), the two biggest companies in the online travel agency (OTA) sector, have seen their stock price decline by close to 25%. AI fears are everywhere, and OTAs are some of the latest victims of this panic. It's tough for investors to differentiate which industry is really being disrupted by AI...
Wachiwit/iStock Editorial via Getty Images Since the start of the year, Expedia ( EXPE ) and Booking ( BKNG ), the two biggest companies in the online travel agency (OTA) sector, have seen their stock price decline by close to 25%. AI fears are everywhere, and OTAs are some of the latest victims of this panic. It's tough for investors to differentiate which industry is really being disrupted by AI and what is just noise. My belief at the moment is that OTAs are victims of pure noise, which presents opportunities for contrarian investors. In this article I'll cover Expedia's latest earnings and what has supported its recent free cash flow growth, followed by my take on AI and what that will do to the OTAs. Next I'll review the company's guidance for 2026 and how that translates into net income and FCF estimates; the wrap-up will consist of a quick valuation section, the risks baked into this article, and my final recommendation: buy. No Longer So Far Behind Booking's Profitability On February 12, Expedia reported Q4'25 and FY'25 earnings with results that confirmed a significant turnaround in the company. After years of net income below 5%, the company seems to be on track to achieve 10% net income in 2026. While that is still half of Booking.com's profitability, which averages 20%, the doubling of net income % supported the run-up from $100 per share to almost $300. Expedia Q4'25 Earnings Snapshot (Expedia IR) Revenue growth has definitely supported the increase in profitability, but I'd also have to give credit to its multi-year journey to transform the product technology, the loyalty program, and to better control spending . Expedia has managed to grow revenue by almost ~9% on a consistent basis since 2023, with some strong growth in Q3'25 and Q4'25. Part of the recent drop in share price may also be associated with a guidance of 6~8% revenue growth for 2026, which is significantly below the 11.4% posted for Q4'25. Expedia's Last Twelve Months Revenue (Expedia IR,...
South Korean stocks slumped as Middle East tensions stoked concern over the impact of rising energy costs, with risk-off sentiment sweeping across global markets. The Kospi Index fell as much as 4.1% as the market reopened after a holiday. Defense and oil companies were top performers on the Korean benchmark Tuesday, while airlines and automakers fell on the potential hit from higher oil prices. T...
South Korean stocks slumped as Middle East tensions stoked concern over the impact of rising energy costs, with risk-off sentiment sweeping across global markets. The Kospi Index fell as much as 4.1% as the market reopened after a holiday. Defense and oil companies were top performers on the Korean benchmark Tuesday, while airlines and automakers fell on the potential hit from higher oil prices. The Iran war, if extended, will test Korea’s resilience that has made it the world’s best-performing market in 2025 and again this year. Chip heavyweights Samsung Electronics Co. and SK Hynix Inc. powered much of the Kospi’s rise on the back of surging global memory demand, but the gains were starting to look stretched after the duo’s stock prices more than tripled over the past 12 months. “An extended conflict involving Iran risks keeping crude prices elevated, reinforcing upside inflation risks and complicating the Federal Reserve’s path toward policy easing,” said Jung In Yun , chief executive officer at Fibonacci Asset Management Global. “That macro backdrop is weighing on AI-linked equities, where stretched valuations are increasingly sensitive to shifts in rates and liquidity expectations.” Read more: Global Funds Dump Nearly $5 Billion of Korean Stocks After Rally Asian peers extended losses to a second day. The won fell as much as 1.9%, its biggest drop since May. Foreign investors’ net selling of Kospi stocks — more than 3.5 trillion won ($2.3 billion) as of mid-day — added downward pressure, making the currency the worst performer in Asia. Retail investors were net buyers.
中東局勢｜賽馬主持黃楨淘滯留迪拜 機場重開惟機票屢遭取消：訊息有些混淆 To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video 【有線新聞】中東局勢緊張，有居住迪拜港人說市內導彈碎片到處散落、部分人開始撤離。當地機場開始恢復有限運作，...
中東局勢｜賽馬主持黃楨淘滯留迪拜 機場重開惟機票屢遭取消：訊息有些混淆 To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video 【有線新聞】中東局勢緊張，有居住迪拜港人說市內導彈碎片到處散落、部分人開始撤離。當地機場開始恢復有限運作，但有滯留當地的港人歸程仍未確定。 迪拜多處受導彈襲擊，住當地的廖太周日手機收到警報呼籲留在室內，她說市內導彈碎片到處散落，有居住當地港人開始撤離。「全部都是攔截（導彈）碎片到處彈，不知道彈去哪裡。大家都有擔心的，萬一再差些可去哪裡？有些去了其他地方，離開杜拜但都在阿聯酋地方，可能鄉郊的地方。」 日前隨馬會到迪拜觀看「昇瀧駒」作賽的馬評人仍滯留當地，雖然當地機場有限度恢復航班服務，但其機票多次遭取消。有線18台賽馬主持黃楨淘：「訊息上輕微有些混淆，因為機場方面網頁就說這班機取消，但航空公司網頁暫時未有確定消息。領空目前有限度復飛，也不是完全安心沒有飛彈飛過。」 他又說目前市中心商場人流較以往少，但八成商舖照常營業，市內亦較少聽見炮彈擊落聲音，相信留在市中心尚算安全。
The yuan rallied after the People’s Bank of China signaled its comfort with the currency’s appreciation via its daily reference rate, ahead of the National People’s Congress. The onshore unit advanced as much as 0.5% to 6.8750 per dollar, to post its biggest jump since May 12. That’s after the central bank strengthened the daily reference rate for the currency by the most since August. The PBOC’s ...
The yuan rallied after the People’s Bank of China signaled its comfort with the currency’s appreciation via its daily reference rate, ahead of the National People’s Congress. The onshore unit advanced as much as 0.5% to 6.8750 per dollar, to post its biggest jump since May 12. That’s after the central bank strengthened the daily reference rate for the currency by the most since August. The PBOC’s move came just a day ahead of the the most important annual political event in the country during which policymakers tend to anchor market confidence. The stronger fixing also signals that the PBOC is still comfortable with mild currency appreciation after it scrapped an extra fee for betting against it in the derivatives market on Friday. “It is possible that they like to have a sense of anchor ahead of important events and this is not out of ordinary indeed,” said Fiona Lim , a senior foreign-exchange analyst at Malayan Banking Berhad. “The fix certainly seems to be a signal to keep the yuan stable and markets have definitely heeded that warning. May see some sideway actions within the 6.83-6.94 range.” The offshore yuan rose as much as 0.4% to 6.8751 per dollar on Tuesday morning in Hong Kong. The PBOC set the yuan fixing at 6.9088 per dollar on Tuesday. The so-called fixing limits the yuan’s move by 2% on either side.