Expedia Named Top Pick by Evercore ISI’s Mark Mahaney
Evercore ISI’s Mark Mahaney has chosen Expedia as his top pick, citing a valuation-based opportunity. The senior managing director has replaced rideshare stock Uber with the online travel platform among his top picks. According to Mahaney, Expedia is expected to have a similar growth rate to competitors Booking and Airbnb, but is currently trading at a much cheaper valuation. He believes that if the growth rates converge, the multiple’s probably going to converge too. Mahaney also highlighted Expedia’s self-help initiatives, such as a new consumer loyalty program and a technological integration. He praised the online travel sector for its strong cash flows and willingness to buy back shares, stating that there hasn’t been a softness yet in travel.
Expedia’s Impressive Performance
Expedia’s stock has had a remarkable year, with shares up nearly 75%. This has helped the stock recover from the drop of more than 50% in 2022. With the gains expected in 2023, the stock is on track to achieve its best year since 2012 when shares surged more than 110%. However, despite the positive outlook, most of Wall Street predicts a pullback ahead. While the average analyst surveyed by LSEG has a buy rating, the price target implies shares can slip more than 9% over the next year.
Investing Wisely in Technology Stocks
Mark Mahaney advises investors to be smart and selective when investing in technology stocks, considering the significant gains seen in the sector this year. The Nasdaq Composite has outperformed, gaining more than 44% and is on track to have its best year since 2003. Mahaney believes that the returns in 2023 may not be as great as what was experienced this year. In light of this, he recommends Amazon as his top pick. Although the stock’s recent performance has been unimpressive compared to the broader group, Mahaney sees potential upside if Amazon’s cloud business can truly accelerate. Despite a surge of over 80% in 2023, after losing almost 50% the previous year, the average analyst remains bullish on Amazon’s future performance, with a buy rating and a price target suggesting shares can climb more than 15%.
Author’s Quote: “Expedia and Amazon: Top Picks for Savvy Investors”
“Expedia and Amazon are my top picks for savvy investors looking to capitalize on the opportunities in the technology sector. With Expedia’s attractive valuation and growth potential, along with Amazon’s cloud business poised for acceleration, these stocks offer promising prospects for those who are strategic and selective in their investments.”
Author’s Conclusion: Making Informed Investment Decisions in the Technology Sector
As we navigate through the ever-evolving landscape of technology stocks, it is crucial for investors to make informed decisions. While Expedia presents an appealing opportunity with its competitive growth rate and attractive valuation, it is important to consider potential pullbacks in the market. Similarly, Amazon’s recent performance may not have been stellar, but its cloud business holds promise for future growth. By staying vigilant and discerning, investors can position themselves for success in the dynamic world of technology investments.
George Barham, an accomplished journalist and avid gambling enthusiast, serves as the esteemed Editor-in-Chief at fly-to-australia.com, Australia’s leading source for comprehensive gambling news and insights. With an unwavering passion for both the written word and the ever-evolving world of betting and gaming, George brings a wealth of knowledge and expertise to the helm of our editorial team.
