Tag Archives: Trivago

Online Travel Updates (Expedia, Booking, Tripadvisor, Trivago & AirBNB / Google)

Expedia 

I invested into Expedia in February 2018 after the stock had become cheap enough. The idea was that a stock in a secular growth sector (online travel) should do well in the long run. After pretty decent fulll year 2018 numbers, with double digit increases in both, top and bottom, line, the first quarter 2019 showed a clear slowdown. Topline growth slowed to ~4%. Excluding Trivago which is still shrinking, topline sales would have grown +6%. Underlying profitability has improved although the first quarter is always the weakest one.

What I found interesting is the fact that Expedia performed better than Booking com. Here is a stock price comparison (including Tripadvisor  and Trivago):

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Travel series (3): Trivago (ISIN US89686D1054)- Ultra fast growing Hotel search engine, but what about profits ?

The company / IPO

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Trivago is an interesting company. Founded in Germany (where succesful startups are very rare anyway), Expedia acquired the majority (61%) in 2012 for 477 mn EUR. Then, in December 2016 Expedia decided to IPO Trivago on NASDAQ at 11 USD per share (down from an initial range of 13-15 USD).

Interestingly. it is not so easy to find out how many shares are outstanding. The IPO itself comprised 30 mn shares, 20,8 mn new shares and 9,2 mn shares from the founders. Expedia didn’t sell any shares.

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