Consumer Internet Stocks Q3 Teardown: Expedia (NASDAQ:EXPE) Vs The Rest

November 15, 2024 at 04:35 AM EST

EXPE Cover Image

Looking back on consumer internet stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including Expedia (NASDAQ: EXPE) and its peers.

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 Q3. As a group, revenues beat analysts’ consensus estimates by 1.9% while next quarter’s revenue guidance was in line.

Thankfully, share prices of the companies have been resilient as they are up 5.4% 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 $4.06 billion, up 3.3% year on year. This print fell short of analysts’ expectations by 1.3%. Overall, it was a slower quarter for the company with some shareholders anticipating a better outcome.

“Our third quarter results exceeded our expectations on gross bookings and earnings with revenue landing in-line. We accelerated bookings growth in our consumer business for the second consecutive quarter, and our advertising and B2B businesses continue to deliver strong double-digit growth," said Ariane Gorin, CEO of Expedia Group.

Interestingly, the stock is up 5.1% since reporting and currently trades at $183.

Is now the time to buy Expedia? Access our full analysis of the earnings results here, it’s free.

Best Q3: EverQuote (NASDAQ: EVER)

Aiming to simplify a once complicated process, EverQuote (NASDAQ: EVER) is an online insurance marketplace where consumers can compare and purchase various types of insurance from different providers

EverQuote reported revenues of $144.5 million, up 163% year on year, outperforming analysts’ expectations by 3%. The business had a stunning quarter with EBITDA guidance for next quarter exceeding analysts’ expectations.

EverQuote pulled off the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 8.5% since reporting. It currently trades at $18.81.

Is now the time to buy EverQuote? Access our full analysis of the earnings results here, it’s free.

Weakest Q3: 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 $24.56 million, down 32.6% year on year, falling short of analysts’ expectations by 7.9%. It was a disappointing quarter as it posted a decline in its users.

Skillz delivered the weakest performance against analyst estimates and slowest revenue growth in the group. The company reported 121,000 monthly active users, down 28% year on year. As expected, the stock is down 7.1% since the results and currently trades at $5.24.

Read our full analysis of Skillz’s results here.

Revolve (NYSE: RVLV)

Launched in 2003 by software engineers Michael Mente and Mike Karanikolas, Revolve Group (NASDAQ: RVLV) is a next generation fashion retailer that leverages social media and a community of fashion influencers to drive its merchandising strategy.

Revolve reported revenues of $283.1 million, up 9.9% year on year. This print beat analysts’ expectations by 4.4%. Overall, 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 active customers estimates.

The company reported 2.63 million active buyers, up 4.7% year on year. The stock is up 28.8% since reporting and currently trades at $33.51.

Read our full, actionable report on Revolve here, it’s free.

Meta (NASDAQ: META)

Famously founded by Mark Zuckerberg in his Harvard dorm, Meta Platforms (NASDAQ: META) operates a collection of the largest social networks in the world - Facebook, Instagram, WhatsApp, and Messenger, along with its metaverse focused Reality Labs.

Meta reported revenues of $40.59 billion, up 18.9% year on year. This number met analysts’ expectations. Aside from that, it was a satisfactory quarter as it also produced an impressive beat of analysts’ EBITDA estimates but number of daily active people in line with analysts’ estimates.

The company reported 3.29 billion daily active users, up 4.8% year on year. The stock is down 3.4% since reporting and currently trades at $572.12.

Read our full, actionable report on Meta here, it’s free.

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September, a quarter in November) have kept 2024 stock markets frothy, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there's still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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