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As the craze of earnings season draws to a close, here's a look back at some of the most exciting (and some less so) results from Q3. Today we are looking at the consumer internet stocks, starting with Expedia (NASDAQ:EXPE).
The ways people shop, transport, communicate, learn and play are undergoing a tremendous, technology-enabled change. Consumer internet companies are playing a key role in lives being transformed, simplified and made more accessible.
The 34 consumer internet stocks we track reported a weaker Q3; on average, revenues beat analyst consensus estimates by 1.2% while next quarter's revenue guidance was 1.1% below consensus. Stocks have faced challenges as investors prioritize near-term cash flows, but consumer internet stocks held their ground better than others, with the share prices up 18% on average since the previous earnings results.
Expedia (NASDAQ:EXPE)
Originally founded as a part of Microsoft, Expedia (NASDAQ:EXPE) is one of the world’s leading online travel agencies.
Expedia reported revenues of $3.93 billion, up 8.6% year on year, topping analyst expectations by 1.9%. It was a mixed quarter for the company, with a decent beat of analysts' revenue estimates but slow revenue growth.
"Our strong third quarter results with record revenue and profitability came in ahead of our guidance and reflect the resilience of travel demand and continued improvements stemming from the execution of our strategy. Our B2B business continues to demonstrate strong year-over-year revenue growth, while more importantly, our B2C revenue growth accelerated over 400 basis points sequentially. Our new unified loyalty program, One Key, is showing good early results following its July launch in the US. In addition, we have just completed the final leg of the Vrbo migration to our single front-end stack,” said Peter Kern, Vice Chairman and CEO, Expedia Group.
The stock is up 59.5% since the results and currently trades at $151.2.
Is now the time to buy Expedia? Access our full analysis of the earnings results here, it's free.
Best Q3: MercadoLibre (NASDAQ:MELI)
Originally started as an online auction platform, MercadoLibre (NASDAQ:MELI) is a one-stop e-commerce marketplace and fintech platform in Latin America.
MercadoLibre reported revenues of $3.76 billion, up 39.8% year on year, outperforming analyst expectations by 5.9%. It was a very strong quarter for the company, with impressive growth in its user base and exceptional revenue growth.
MercadoLibre delivered the fastest revenue growth among its peers. The company reported 120 million daily active users, up 36.4% year on year. The stock is up 22.4% since the results and currently trades at $1,588.99.