Expedia: Buy! Buy! Buy!

Posted May 10th 2007 11:50AM by Eric Buscemi
Filed under: Earnings Reports, Expedia Inc (EXPE), Bargain Stocks

Turnaround is here and it is time to jump into Expedia Inc's (NASDAQ: EXPE) stock. After hitting some serious growth problems, management changes and massive investment in new products and software infrastructure are finally leading to better revenue and earnings growth.

OBITA increased 18%
First quarter bookings hit the $5 billion mark, over $55 million every day
European leisure business grew over 30% with revenue hitting $1 billion
Free cash flow was $606 million and shares outstanding decreased by 11% during the past year due to big share buybacks

It appears many of the initiatives that have been put in place on now bearing fruit. I say, buy and hold this stock. Free cash flow should go through the roof the next few years as new deals with hotels and airlines take hold. Also, international business is getting stronger and stronger.

Once again, Barry Diller has made the correct adjustments with this business model being here to stay.

Tags: earnings growth, EarningsGrowth, EXPE, Expedia, Expedia Inc, ExpediaInc, free cash flow, FreeCashFlow, software, Turnaround