Expedia (EXPE), the company that started off as a small division within Microsoft in the year 1996, has been a top performer ever since it got spun off from TripAdvisor, until a disaster struck its previous quarter results. Net income declined 32.0% YoY from $105.2 million to $71.5 million. Expedia’s share price had taken a complete ‘U-turn’ declining over 40% over the next four days showing investors’ dissatisfaction on its latest bad results.
Following a series of the aforesaid negative laggards which stood in the minds of investors, Expedia is finally trying to make a strategic move by signing a contract with NPP (National Purchasing Partners). NPP helps the company by offering a portfolio of discount pricing contracts. This could help Expedia gain a number of NPP’s loyal clients. Also, Expedia will be creating a travel discount program specifically designed for NPP users that will enable them to book travel and access exclusive savings.
On a side note, the statement according to a report published by Oxford Economics, USA, states that “for every dollar invested in business travel would yield $12.50 in incremental revenue and $3.8 in new profits”, which might encourage business travels and benefit companies like Expedia.
Expedia stock price
Source: Expedia stock chart by Amigobulls
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