Stock Track | Expedia Plunges 8.5% in After-Hours Trading on Downbeat Q2 Guidance Amid Middle East Conflict Impact

Stock Track
May 08

Expedia Group's stock plummeted 8.50% during extended trading on Thursday, as investors reacted negatively to the company's second-quarter outlook despite strong first-quarter financial results.

The sharp decline followed the online travel agency's issuance of current-quarter gross bookings guidance that fell short of analyst expectations. Expedia expects Q2 gross bookings in the range of $32.5 billion to $33.1 billion, the midpoint of which is below the average analyst estimate. CEO Ariane Gorin attributed the cautious outlook to the impact of the Middle East conflict, which led to cancellations in March across Europe and Asia, despite the region representing only about 2% of the company's total business.

The downbeat guidance overshadowed the company's better-than-expected Q1 performance, where adjusted earnings and revenue significantly exceeded Wall Street estimates. The conflict has created uncertainty in the travel industry, prompting Expedia to take a more conservative stance for the current quarter.

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