Financial Data and Key Metrics Changes - In Q1 2025, Expedia Group reported a 43% increase in bookings and revenue, which was at the lower end of their guidance range due to weaker travel demand in the U.S. [6][7] - EBITDA grew by 16%, and earnings per share increased by 90% [7][22] - Booked room nights grew by 6%, with low single digits growth in the U.S., mid single digits in Europe, and mid-teens growth in the rest of the world [7][22] - Total gross bookings reached $31.5 billion, up 4%, while revenue grew by 3% to $3 billion [24][26] Business Line Data and Key Metrics Changes - The B2B business saw a 14% increase in bookings, significantly outperforming the industry [8][22] - The advertising business delivered a robust 20% revenue growth, with a record number of deals signed [9][15] - Brand Expedia was the fastest-growing consumer brand with room nights up 7%, while Vrbo grew modestly and Hotels.com experienced a decline due to softer U.S. demand [9][10] Market Data and Key Metrics Changes - U.S. demand was soft, with inbound travel bookings down 7%, particularly from Canada, which fell nearly 30% [25][60] - The average daily rates (ADR) were $214, down 1%, although up 1% on an FX neutral basis [24][30] - The B2B segment benefited from strong international performance, particularly in APAC, which grew by 30% [23][30] Company Strategy and Development Direction - The company is focused on three strategic priorities: delivering more value for travelers, investing in growth opportunities, and driving operational efficiencies [10][19] - AI is being leveraged to enhance product offerings, improve marketing effectiveness, and streamline operations [13][80] - The company aims to improve its loyalty program and has made adjustments to better serve travelers [108][110] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertainty in the macroeconomic environment but expressed confidence in the company's ability to adapt and continue delivering value [21][121] - The company expects Q2 gross bookings growth of 2% to 4% and revenue growth of 3% to 5%, with EBITDA margin expansion of 75 to 100 basis points [35][36] - Management highlighted the importance of maintaining a diversified B2B business to mitigate risks from macro headwinds [49][117] Other Important Information - The company ended the quarter with $6.1 billion in unrestricted cash and short-term investments [33][34] - A quarterly dividend of $0.40 per share was reinitiated, and share repurchases were accelerated [34] Q&A Session Summary Question: Marketing spend and ROI - Management indicated that they spent about $1 billion on marketing in Q1, slightly deleveraging, and will focus on profitable growth opportunities [39][42] Question: Hotels.com turnaround - Management expressed optimism about Hotels.com, noting recent brand relaunch efforts and positive momentum [40][41] Question: Managing macro headwinds - Management highlighted the strength and diversity of the B2B business, which is well-positioned to handle macroeconomic challenges [48][49] Question: Monthly trends and consumer behavior - Management noted a slowdown in April compared to March, with a shift towards lower ADR rate plans and increased discounts from hotel partners [60] Question: Experiences and attractions investment - Management acknowledged the growing importance of experiences and attractions but did not provide specific investment details [65][69] Question: AI investments - Management discussed the strategic importance of AI in enhancing products, driving traffic, and improving team effectiveness [75][80] Question: Booking curve and international rollout - Management noted a mixed picture in booking windows and highlighted strong growth in the B2B segment, particularly in Asia [89][90] Question: B2B performance and advertising impact - Management confirmed that while B2B experienced some pressure, it remained diversified and continued to grow, with advertising business prospects remaining strong [115][117]

Financial Data and Key Metrics Changes - In Q1 2025, the company reported a 43% increase in bookings and revenue, which was at the lower end of the guidance range due to weaker travel demand in the U.S. [5][22] - EBITDA grew by 16%, and earnings per share increased by 90% [5][22] - Booked room nights grew by 6%, with low single digits growth in the U.S., mid single digits in Europe, and mid-teens growth in the rest of the world [6][22] Business Line Data and Key Metrics Changes - The B2B business posted a 14% bookings growth, outperforming the industry [7][22] - The advertising business achieved a robust 20% revenue growth [8][22] - Brand Expedia was the fastest-growing consumer brand with room nights up 7%, while Vrbo grew modestly and Hotels.com experienced a decline due to softer U.S. demand [8][22] Market Data and Key Metrics Changes - U.S. demand was soft, driven by declining consumer sentiment, with inbound travel to the U.S. down 7% and bookings from Canada falling nearly 30% [6][25] - The company noted a shift in consumer behavior, with travelers opting for lower average daily rates [61] Company Strategy and Development Direction - The company is focused on three strategic priorities: delivering more value for travelers, investing in growth opportunities, and driving operational efficiencies [9][18] - AI is being leveraged to enhance product experiences, improve marketing effectiveness, and streamline operations [13][80] - The company is expanding its B2B business and enhancing advertising solutions to drive future growth [15][16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertainty in the macroeconomic environment but expressed confidence in the company's ability to navigate challenges and continue delivering value [21][120] - The company expects Q2 2025 gross bookings growth of 2% to 4% and revenue growth of 3% to 5%, with EBITDA margin expansion of 75 to 100 basis points [36][37] Other Important Information - The company ended the quarter with $6.1 billion in unrestricted cash and short-term investments and maintained a total debt of $6.3 billion [34][35] - The company reinitiated a quarterly dividend of $0.40 per share and accelerated stock repurchases [35] Q&A Session Summary Question: Marketing spend and ROI - Management indicated that they spent about $1 billion on marketing in Q1 and will focus on profitable growth opportunities while reducing costs where necessary [45][46] Question: Hotels.com turnaround - Management expressed optimism about Hotels.com, highlighting recent brand relaunch efforts and positive momentum [44][46] Question: Managing macro headwinds - Management noted the B2B business's geographic and segment diversity, which helps mitigate macroeconomic pressures [51][52] Question: Monthly trends and consumer behavior - Management reported that April was softer than March, with a shift towards lower average daily rates and increased discounts from hotel partners [61] Question: Experiences and attractions investment - Management acknowledged the growing importance of experiences and attractions but did not provide specific investment details [70] Question: AI investments - Management discussed the strategic importance of AI in enhancing products, driving traffic, and improving team effectiveness [76][80] Question: Booking curve and international rollout - Management noted a mixed picture in booking windows, with slight expansion for hotels and decline for vacation rentals, while the B2B business showed strong growth in Asia [88][89] Question: B2B performance and advertising impact - Management confirmed that while the B2B business faced some pressure from U.S. softness, it remained globally diversified and continued to grow [118][119]

Core Insights - Expedia Group Inc reported first-quarter revenue of $2.99 billion, a 3% increase year-over-year, but fell short of the consensus estimate of $3.01 billion [1] - The revenue growth was driven by B2B and Advertising segments, which increased by 14% and 20% year-over-year, respectively [1] - The company reported earnings per share of 40 cents, exceeding the consensus estimate of 29 cents per share [2] - Booked room nights rose by 6% year-over-year, despite softened travel demand in the U.S., while lodging gross bookings increased by 5% [2] - Total gross bookings were up 4% year-over-year in the first quarter [2] - CEO Ariane Gorin stated that the company achieved bookings and revenue within guidance despite weaker demand, and anticipates margin expansion and revenue growth in the future [3] Stock Performance - Expedia's stock declined by 6.88% to $157.36 in after-hours trading, with a 52-week trading range of $107.25 to $207.73 [4]

[Financial and Operational Highlights](index=1&type=section&id=Financial%20and%20Operational%20Highlights) Expedia Group's first quarter 2025 results met top-line guidance with 4% growth in gross bookings and 3% in revenue year-over-year, surpassing bottom-line expectations with a 16% increase in Adjusted EBITDA and expanding margins | Metric | Q1 2025 | Q1 2024 | Δ Y/Y | | :--- | :--- | :--- | :--- | | Gross bookings | $31,451M | $30,164M | 4% | | Revenue | $2,988M | $2,889M | 3% | | Operating loss | $(70)M | $(110)M | (36)% | | Net loss attributable to Expedia Group, Inc. | $(200)M | $(135)M | 49% | | Adjusted EBITDA* | $296M | $255M | 16% | | Adjusted EPS* | $0.40 | $0.21 | 90% | | Free cash flow* | $2,756M | $2,702M | 2% | - CEO Ariane Gorin stated that despite weaker than expected demand in the US, the company achieved its guidance, drove bottom-line growth, and is committed to continuing margin expansion while growing its top-line[3](index=3&type=chunk) - Key growth drivers in Q1 included a **6% increase in booked room nights**, a **14% rise in B2B gross bookings**, and a **20% growth in the Advertising business revenue**[7](index=7&type=chunk) - The company repurchased approximately **1.7 million shares for $330 million** and paid a quarterly dividend of **$0.40 per share** during the first quarter[7](index=7&type=chunk) [Detailed Financial and Operating Metrics](index=3&type=section&id=Detailed%20Financial%20and%20Operating%20Metrics) This section provides a detailed quarterly breakdown of key operating metrics and financial performance by business segment, highlighting an 8% growth in Merchant gross bookings and a 14% increase in B2B segment revenue [Trended Metrics](index=3&type=section&id=Trended%20Metrics) Q1 2025 operating metrics show a 6% year-over-year increase in booked room nights and a 4% rise in booked air tickets, though the Average Daily Rate (ADR) declined by 1% | Operating Metric | Q1 2025 | Q1 2024 | Y/Y Growth | | :--- | :--- | :--- | :--- | | Booked room nights (millions) | 107.7 | 101.2 | 6% | | Average Daily Rate (ADR) Booked | $213.9 | $216.5 | (1)% | | Booked air tickets (millions) | 14.8 | 14.2 | 4% | | Gross Bookings by Business Model | Q1 2025 ($M) | Q1 2024 ($M) | Y/Y Growth | | :--- | :--- | :--- | :--- | | Agency | $13,239 | $13,301 | 0% | | Merchant | $18,212 | $16,863 | 8% | | **Total** | **$31,451** | **$30,164** | **4%** | | Revenue by Product | Q1 2025 ($M) | Q1 2024 ($M) | Y/Y Growth | | :--- | :--- | :--- | :--- | | Lodging | $2,289 | $2,228 | 3% | | Air | $107 | $115 | (7)% | | Advertising and media - EG | $174 | $145 | 20% | [Segment Performance](index=5&type=section&id=Segment%20Performance) The B2B segment was the primary growth driver in Q1 2025, with gross bookings up 14% and revenue increasing 14% year-over-year, while the B2C segment saw modest 1% growth in gross bookings but a 2% decline in revenue | Performance by Segment (Q1 2025 vs Q1 2024) | B2C | B2B | | :--- | :--- | :--- | | Gross Bookings Growth | 1% | 14% | | Revenue Growth | (2)% | 14% | | Adjusted EBITDA Growth | 0% | 26% | - Direct selling and marketing expenses as a percentage of gross bookings remained stable for the B2C segment at **4.9%** but increased for the B2B segment[19](index=19&type=chunk) - The B2B segment demonstrated improved profitability with its Adjusted EBITDA margin expanding by **219 basis points to 22.8%**, while the B2C segment's margin saw a modest **20 basis point increase to 11.1%**[19](index=19&type=chunk) [Consolidated Financial Statements (GAAP)](index=6&type=section&id=Consolidated%20Financial%20Statements%20(GAAP)) The GAAP-based consolidated financial statements detail the company's financial position and performance, reporting Q1 2025 revenue of $2.99 billion, an operating loss of $70 million, and a net loss of $200 million [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) For Q1 2025, Expedia Group's revenue increased 3% YoY to $2.99 billion, recording an operating loss of $70 million, a 36% improvement, though net loss widened to $200 million primarily due to 'Other, net' expenses | Income Statement (in millions) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue | $2,988 | $2,889 | | Operating loss | $(70) | $(110) | | Net loss attributable to Expedia Group, Inc. | $(200) | $(135) | | Diluted loss per share | $(1.56) | $(0.99) | [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2025, Expedia Group held $5.7 billion in cash and cash equivalents and total assets of $26.1 billion, with total liabilities at $23.8 billion, including $12.9 billion in deferred merchant bookings | Balance Sheet (in millions) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $5,715 | $4,183 | | Total current assets | $13,587 | $9,815 | | Total assets | $26,114 | $22,388 | | Deferred merchant bookings | $12,915 | $8,517 | | Total liabilities | $23,793 | $19,589 | | Total stockholders' equity | $2,321 | $2,799 | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) In Q1 2025, the company generated $2.95 billion in cash from operating activities, largely driven by a $4.4 billion increase in deferred merchant bookings, while using $384 million in investing and $469 million in financing activities | Cash Flow (in millions) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $2,952 | $2,879 | | Net cash used in investing activities | $(384) | $(240) | | Net cash used in financing activities | $(469) | $(631) | | Net increase in cash and equivalents | $2,160 | $1,961 | [Non-GAAP Financial Measures and Reconciliations](index=10&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) This section defines non-GAAP metrics like Adjusted EBITDA and Free Cash Flow, presenting detailed reconciliations to GAAP, with Q1 2025 Adjusted EBITDA at $296 million and Free Cash Flow at $2.76 billion [Definitions of Non-GAAP Measures](index=10&type=section&id=Definitions%20of%20Non-GAAP%20Measures) The company uses non-GAAP measures like Adjusted EBITDA, Adjusted EBIT, Adjusted Net Income, and Free Cash Flow to evaluate business performance by excluding items such as stock-based compensation and restructuring charges - Management uses non-GAAP measures like Adjusted EBITDA to evaluate performance, believing they provide a more meaningful comparison of core operating results by excluding non-cash or unpredictable items such as stock-based compensation, restructuring, and acquisition impacts[35](index=35&type=chunk)[37](index=37&type=chunk) - Adjusted Net Income is used to represent combined results settled in cash, excluding items like stock-based compensation and amortization of intangibles, and is calculated using a long-term projected tax rate of **21.5% for 2025**[42](index=42&type=chunk)[46](index=46&type=chunk) - Free Cash Flow is defined as net cash from operating activities less capital expenditures and is considered useful for showing cash generated by core business operations before financing and certain investing activities[47](index=47&type=chunk) [Reconciliation of GAAP to Non-GAAP Measures](index=13&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) This section provides detailed tables reconciling GAAP figures to non-GAAP metrics, showing Q1 2025 operating loss of $70 million reconciled to an Adjusted EBITDA of $296 million, and GAAP net loss of $200 million to an Adjusted Net Income of $53 million | Reconciliation to Adjusted EBITDA (Q1 2025, in millions) | Amount | | :--- | :--- | | Operating loss (GAAP) | $(70) | | Realized gain on revenue hedges | $23 | | Restructuring charges | $26 | | Stock-based compensation | $98 | | Amortization of intangible assets | $11 | | Depreciation | $208 | | **Adjusted EBITDA (Non-GAAP)** | **$296** | | Reconciliation to Adjusted Net Income & EPS (Q1 2025) | Amount | | :--- | :--- | | Net loss attributable to Expedia Group (GAAP) | $(200)M | | Adjustments (e.g., stock comp, amortization, investment loss) | +$273M | | Tax effects of adjustments | $(20)M | | **Adjusted net income (Non-GAAP)** | **$53M** | | **Adjusted EPS (Non-GAAP)** | **$0.40** | | Free Cash Flow Calculation (in millions) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $2,952 | $2,879 | | Less: Total capital expenditures | $(196) | $(177) | | **Free cash flow** | **$2,756** | **$2,702** |

Core Viewpoint - Expedia Group (EXPE) is expected to report first-quarter 2025 results on May 8, with revenues estimated at $3.03 billion, reflecting a 4.76% increase year-over-year, and earnings per share projected at 42 cents, indicating a 100% increase from the previous year [1][4]. Financial Performance - The Zacks Consensus Estimate for EXPE's first-quarter 2025 revenues is $3.03 billion, a 4.76% increase from the prior year's quarter [1]. - The earnings consensus is 42 cents per share, revised down by 2 cents in the last 30 days, but still suggests a 100% increase year-over-year [1]. Historical Performance - EXPE has exceeded the Zacks Consensus Estimate for earnings in the last four quarters, with an average surprise of 45.86% [2]. Growth Factors - The company's performance is anticipated to be influenced by international demand, strategic investments, and cost discipline [4]. - Gross bookings are projected to grow by 4% to 6%, with revenue growth expected between 3% to 5%, excluding a two-point foreign exchange headwind and the Easter shift [5]. - Underlying growth, when excluding these factors, is expected to be between 7% to 9% [5]. Segment Performance - Vrbo is likely to continue its growth momentum, supported by expanded urban inventory and improved supply quality [6]. - Brand Expedia is expected to benefit from merchandising actions in air and package products, driving incremental bookings without additional marketing costs [6]. - The B2B segment, which accounted for 27% of total bookings in 2024, is expected to remain strong, particularly in the APAC region [7]. - Advertising revenues, which grew by 25% in the fourth quarter, are anticipated to continue being a significant contributor to top-line growth [8]. Profitability Metrics - Adjusted EBITDA margins for the first quarter are expected to remain flat to slightly up year-over-year, reflecting sustained overhead and marketing efficiency [9]. - Cost-saving actions taken in 2024 are expected to support profitability despite seasonal and foreign exchange pressures [9]. Earnings Outlook - According to the Zacks model, EXPE has a positive Earnings ESP of +14.86% and a Zacks Rank of 3, indicating a favorable outlook for an earnings beat [10].

Core Viewpoint - Analysts project that Expedia (EXPE) will report quarterly earnings of $0.42 per share, reflecting a 100% year-over-year increase, with revenues expected to reach $3.03 billion, a 4.8% increase from the same quarter last year [1]. Earnings Estimates - The consensus EPS estimate has been revised 4.9% lower over the last 30 days, indicating a reevaluation of initial estimates by analysts [2]. - Prior to earnings releases, revisions to earnings projections are crucial for predicting investor behavior, as empirical studies show a strong correlation between earnings estimate trends and short-term stock performance [3]. Revenue Projections - Analysts predict 'Revenue- B2B' will reach $924.59 million, marking an 11% increase year-over-year [5]. - 'Revenue by Service Type- Lodging' is expected to be $2.36 billion, reflecting a 6.1% year-over-year change [5]. - 'Revenue- Trivago' is projected at $74.76 million, indicating a 6.8% increase from the prior year [5]. - 'Revenue by Service Type- Air' is estimated at $114.41 million, suggesting a slight decline of 0.5% year-over-year [6]. - 'Revenue- Advertising, Media and other' is expected to reach $277.37 million, a 12.3% increase from the previous year [6]. - 'Revenue- International' is projected at $1.22 billion, reflecting an 11.3% increase year-over-year [7]. - 'Revenue- United States' is estimated at $1.85 billion, indicating a 3.3% year-over-year change [7]. Gross Bookings - Analysts forecast 'Gross bookings - Total' to reach $31.85 billion, compared to $30.16 billion from the previous year [7]. - 'Gross bookings - Merchant' is expected to be $18.83 billion, up from $16.86 billion year-over-year [8]. - 'Gross bookings - Agency' is projected at $13.81 billion, compared to $13.30 billion from the prior year [9]. Key Metrics - The consensus estimate for 'Stayed room nights/ Booked room nights' stands at 106, up from 101 year-over-year [8]. - 'Stayed Room Night /Booked room nights Growth' is expected to be 8.1%, compared to 7% in the same quarter last year [8]. Stock Performance - Over the past month, shares of Expedia have returned +14.1%, significantly outperforming the Zacks S&P 500 composite's +0.4% [9].

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Expedia, with a focus on how actual results compare to estimates, which could significantly impact stock price [1][2]. Earnings Expectations - Expedia is expected to report quarterly earnings of $0.42 per share, reflecting a year-over-year increase of +100% [3]. - Revenue is projected to be $3.03 billion, representing a 4.8% increase from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 4.85% over the last 30 days, indicating a reassessment by analysts [4]. - A positive Earnings ESP of +14.86% suggests analysts have recently become more optimistic about Expedia's earnings prospects [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [8]. - Expedia currently holds a Zacks Rank of 3, which, along with the positive Earnings ESP, suggests a likelihood of beating the consensus EPS estimate [11]. Historical Performance - In the last reported quarter, Expedia exceeded the expected earnings of $2.07 per share by delivering $2.39, resulting in a surprise of +15.46% [12]. - Over the past four quarters, Expedia has consistently beaten consensus EPS estimates [13]. Industry Comparison - In the Zacks Internet - Commerce industry, TripAdvisor is expected to report earnings of $0.05 per share, indicating a year-over-year decline of -58.3% [17]. - TripAdvisor's revenue is anticipated to be $389.03 million, down 1.5% from the previous year [17]. - The consensus EPS estimate for TripAdvisor has been revised down by 10% over the last 30 days, resulting in a negative Earnings ESP of -17.24% [18].

Core Viewpoint - The imposition of tariffs by the U.S. government has severely disrupted the global economy and significantly impacted the U.S. tourism market, leading to a sharp decline in stock prices of various travel-related companies [1][2][3]. Group 1: Impact on Travel Companies - Major U.S. travel companies, including Carnival Cruise and Norwegian Cruise, have seen substantial stock price declines, with Carnival down 7.94% in April and 29.77% over the past three months, while Norwegian Cruise fell 12.39% in April and 38.57% over the same period [1][2]. - The hotel industry is also heavily affected, with Marriott's stock down 7.3% in April and 20.57% over three months, and Hyatt down 12.52% in April and 31.38% over three months [1][2][3]. - U.S. airlines experienced significant stock drops, with United Airlines plummeting 15.61% and American Airlines and Delta Airlines both dropping over 10% on April 3 [2]. Group 2: Economic Pressures on the Industry - The tourism sector is facing dual pressures from rising costs and declining demand, with airlines contending with increased component and fuel costs, as well as shrinking international route demand [3]. - The tariffs have led to soaring prices for aircraft components from Boeing, increasing maintenance and upgrade costs for airlines, potentially pushing them to consider purchasing from Airbus instead [3]. - The hotel industry is also struggling with rising international procurement costs and renovation expenses due to tariffs, which compress profit margins [3]. Group 3: Changes in the Inbound Tourism Market - The tariffs have caused a significant downturn in the inbound tourism market, which has traditionally generated a substantial trade surplus for the U.S. tourism industry [4]. - The U.S. tourism industry is projected to generate approximately $1.3 trillion in revenue in 2024, supporting around 15 million jobs, but the tariffs are expected to negatively impact this revenue [4][5]. - A decline in Canadian visitors, who accounted for 20.2 million trips to the U.S. last year, could result in a loss of $2.1 billion in consumer spending and potentially lead to 14,000 job losses [5]. Group 4: Future Outlook and Market Shifts - The U.S. tourism industry is forecasted to lose $72 billion in revenue by 2025 due to a significant drop in inbound visitors, affecting hotels, airlines, and dining sectors [5]. - In light of the downturn in traditional tourist destinations, there is a shift towards more resilient regional markets, with increased travel expected in areas like Japan, South Korea, and Southeast Asia [5].

Industry Overview - The tourism sector is experiencing a rebound, leading to increased opportunities for online travel booking and searching platforms in 2025 [1] - Competition remains high due to factors such as market accessibility, technological advancements, and price sensitivity, which lower entry barriers for new companies [1] Company Insights - The logistics sector has been a focus for nearly two decades, with significant experience in stock investing and macroeconomic analysis [1] - The company has diversified its investments across various industries and market capitalizations, including banking, telecommunications, logistics, and hotels [1] - The company has been active in both the ASEAN and US markets, with holdings in banks, hotels, shipping, and logistics companies [1]

Core Viewpoint - The article compares two Internet - Commerce stocks, Expedia (EXPE) and MercadoLibre (MELI), to determine which is more attractive to value investors [1]. Valuation Metrics - Both EXPE and MELI currently hold a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions and an improving earnings outlook for both companies [3]. - EXPE has a forward P/E ratio of 9.56, while MELI has a forward P/E of 38.76, suggesting that EXPE may be undervalued compared to MELI [5]. - The PEG ratio for EXPE is 0.52, indicating a favorable valuation when considering expected earnings growth, whereas MELI has a PEG ratio of 1.03 [5]. - EXPE's P/B ratio is 6.53, compared to MELI's P/B of 21.45, further supporting the notion that EXPE is more attractively valued [6]. Value Grades - Based on the valuation metrics, EXPE has a Value grade of B, while MELI has a Value grade of D, indicating that EXPE is currently the superior value option [6][7].