Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Expedia (NASDAQ: EXPE) and the best and worst performers in the consumer internet industry.
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 49 consumer internet stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 4.3% while next quarter’s revenue guidance was 0.5% below.
Thankfully, share prices of the companies have been resilient as they are up 6.5% on average since the latest 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 $3.79 billion, up 6.4% year on year. This print exceeded analysts’ expectations by 2.1%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ EBITDA estimates and a decent beat of analysts’ number of room nights booked estimates.
"We delivered a solid second quarter, surpassing our top and bottom line expectations while navigating a dynamic environment,” said Ariane Gorin, CEO of Expedia Group, “Our performance was driven by continued strength across B2B and Advertising and further progress on our key priorities.
Interestingly, the stock is up 14.7% since reporting and currently trades at $215.78.
Is now the time to buy Expedia? Access our full analysis of the earnings results here, it’s free.
Best Q2: Skillz (NYSE: SKLZ)
Taking a new twist at video gaming, Skillz (NYSE: SKLZ) offers developers a platform to create and distribute mobile games where players can pay fees to compete for cash prizes.
Skillz reported revenues of $27.37 million, up 8.2% year on year, outperforming analysts’ expectations by 19.9%. The business had an incredible quarter with an impressive beat of analysts’ EBITDA estimates and an impressive beat of analysts’ number of paying monthly active users estimates.
The market seems happy with the results as the stock is up 29.2% since reporting. It currently trades at $8.58.
Is now the time to buy Skillz? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: Coinbase (NASDAQ: COIN)
Widely regarded as the face of crypto, Coinbase (NASDAQ: COIN) is a blockchain infrastructure company updating the financial system with its trading, staking, stablecoin, and other payment solutions.
Coinbase reported revenues of $1.50 billion, up 3.3% year on year, falling short of analysts’ expectations by 4.3%. It was a disappointing quarter as it posted a significant miss of analysts’ number of monthly transacting users estimates and a significant miss of analysts’ EBITDA estimates.
Coinbase delivered the weakest performance against analyst estimates in the group. The company reported 8.7 million monthly active users, up 6.1% year on year. As expected, the stock is down 15.1% since the results and currently trades at $320.74.
Read our full analysis of Coinbase’s results here.
Reddit (NYSE: RDDT)
Founded in 2005 by two University of Virginia roommates, Reddit (NYSE: RDDT) facilitates user-generated content across niche communities (called subreddits) that discuss anything from stocks to dating and memes.
Reddit reported revenues of $499.6 million, up 77.7% year on year. This print beat analysts’ expectations by 17.2%. Overall, it was a very strong quarter as it also produced EBITDA guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EBITDA estimates.
Reddit achieved the fastest revenue growth among its peers. The company reported 50.3 million daily active users, up 10.5% year on year. The stock is up 34.7% since reporting and currently trades at $217.
Read our full, actionable report on Reddit here, it’s free.
Booking (NASDAQ: BKNG)
Formerly known as The Priceline Group, Booking Holdings (NASDAQ: BKNG) is the world’s largest online travel agency.
Booking reported revenues of $6.80 billion, up 16% year on year. This result surpassed analysts’ expectations by 3.7%. It was a very strong quarter as it also recorded an impressive beat of analysts’ EBITDA estimates and a narrow beat of analysts’ number of room nights booked estimates.
The company reported 309 million nights booked, up 7.7% year on year. The stock is up 2.9% since reporting and currently trades at $5,722.
Read our full, actionable report on Booking here, it’s free.
Market Update
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
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