Group 1 - Google has launched a new AI-driven search tool to assist users in creating comprehensive travel plans, impacting travel-related stocks negatively, with Expedia, Booking Holdings, and Trip.com seeing stock declines of nearly 5% [1] - The new tool includes an expanded "flight deals" search engine within Google Flights, designed for travelers seeking last-minute deals and cost-effective destinations [1] - Travelers can share their potential travel plans in AI mode, select "create with Canvas," and view results in the Canvas sidebar, allowing for further recommendations and flight times [1] Group 2 - Google has introduced an AI mode with booking agent capabilities for users looking to book restaurants, event tickets, or spa appointments, searching options across multiple websites [2] - Users can make reservations through platforms like OpenTable, Ticketmaster, StubHub, and Booksy, with future plans to allow direct booking of flights and hotels within Google's AI mode [2] - Google aims to collaborate with various travel companies to ensure all the best options are easily accessible to users [2]

Core Insights - PayPal has launched "PayPal Pay in 4," an interest-free, no-fee buy now, pay later (BNPL) solution for Canadian consumers, available in time for the festive shopping season [1][2] - The service allows Canadians to split eligible purchases from $30 to $1,500 into four equal, interest-free payments over six weeks, enhancing flexibility at checkout [2] - PayPal's 2025 Festive Spending survey indicates a strong consumer interest in BNPL, with 60% of respondents who haven't used it expressing willingness to try it if there are no fees [2][3] Consumer Behavior - 74% of Canadians set a budget for holiday shopping, and 72% plan their shopping in advance to control spending [3] - 51% of Canadians plan to spend the same as last year, while 14% intend to spend more [3] - Categories where Canadians would consider using BNPL include appliances (31%), home décor/furniture (30%), and electronics (26%) [3] Business Impact - Businesses offering PayPal's BNPL solutions experience increased conversion rates and higher sales, which are critical during peak holiday seasons [2] - The global approval rate for PayPal BNPL is 90%, and it boosts order value by 80% [2] - PayPal's partnership with Cadillac Fairview aims to enhance the holiday shopping experience, providing consumers with flexible payment options [2]

Group 1 - The company aims to invest in firms with strong qualitative attributes and acquire them at attractive prices based on fundamentals [1] - The investment strategy involves maintaining a concentrated portfolio to avoid underperformers while maximizing exposure to high-potential winners [1] - The company plans to publish articles about selected companies approximately three times a week, including extensive quarterly follow-ups and constant updates [1]

Core Viewpoint - Mizuho raised its price target on Expedia Group Inc. to $270 from $240 while maintaining a Neutral rating due to better-than-expected third-quarter results and positive guidance [1][2] Group 1: Financial Performance - Expedia's gross bookings value (GBV) growth accelerated, with B2C increasing from 1% in Q2 to 6.6% in Q3, and B2B rising from 17% to 26% [1] - Management's outlook for fourth-quarter and 2025 margins has improved, projecting approximately two percentage points of EBITDA margin expansion this year and further improvement in 2026 [2] Group 2: Analyst Sentiment - Analysts acknowledged the company's strong fundamentals and progress but noted that the recent rally in shares has balanced the risk-reward profile, leading to a neutral stance despite continued growth prospects [2]

Core Viewpoint - Expedia Group Inc. has shown significant stock performance with a 24.85% increase over the past month and a 49.62% increase over the past year, leading to optimism among long-term shareholders, while concerns about potential overvaluation arise from the price-to-earnings (P/E) ratio [1]. Group 1: Stock Performance - The current trading price of Expedia Group Inc. is $272.70, reflecting a 2.78% increase in the current session [1]. - Over the past month, the stock has increased by 24.85% [1]. - In the past year, the stock has appreciated by 49.62% [1]. Group 2: P/E Ratio Analysis - The P/E ratio is a critical metric for long-term shareholders to evaluate the company's market performance against historical earnings and industry standards [5]. - Expedia Group Inc. has a P/E ratio of 25.56, which is significantly lower than the industry average P/E ratio of 67.31 in the Hotels, Restaurants & Leisure sector [6]. - A lower P/E ratio may suggest that shareholders expect the stock to perform worse than its peers or that the stock is undervalued [6]. Group 3: Investment Considerations - While the P/E ratio is a useful tool for assessing market performance, it should be interpreted cautiously as it may indicate undervaluation or weak growth prospects [9]. - Investors are encouraged to consider the P/E ratio alongside other financial metrics, industry trends, and qualitative factors for a comprehensive analysis of the company's financial health [9].

Core Viewpoint - Investors in the Internet - Commerce sector should consider Expedia (EXPE) and MercadoLibre (MELI) for potential undervalued stock opportunities [1] Group 1: Zacks Rank and Earnings Outlook - Expedia has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while MercadoLibre has a Zacks Rank of 4 (Sell) [3] - The Zacks Rank system emphasizes companies with positive earnings estimate revisions, suggesting that EXPE is likely experiencing a more favorable earnings outlook than MELI [3] Group 2: Valuation Metrics - EXPE has a forward P/E ratio of 18.50, significantly lower than MELI's forward P/E of 51.95 [5] - The PEG ratio for EXPE is 1.05, while MELI's PEG ratio is 1.50, indicating that EXPE may offer better value relative to its expected earnings growth [5] - EXPE's P/B ratio is 12.79 compared to MELI's P/B of 17.06, further supporting EXPE's more attractive valuation metrics [6] Group 3: Value Grades - EXPE has earned a Value grade of B, while MELI has a Value grade of D, reflecting the stronger valuation metrics and estimate revision activity for EXPE [6][7] - Overall, value investors are likely to conclude that EXPE is the superior option compared to MELI at this time [7]

Industry Overview - U.S. holiday sales are projected to exceed $1 trillion for the first time, with an expected growth of 3.7-4.2% year over year, translating to sales of $1.01-$1.02 trillion [3] - Last year's holiday sales rose 4.3% year over year to $976.1 billion [3] - An uncertain macroeconomic outlook, influenced by trade policies and the ongoing government shutdown, has negatively impacted consumer confidence [1] Retailer Recommendations - Five retailers are recommended for investment during the holiday season: Amazon.com Inc. (AMZN), Walmart Inc. (WMT), Tapestry Inc. (TPR), Dollar General Corp. (DG), and Expedia Group Inc. (EXPE), all carrying a favorable Zacks Rank 2 (Buy) [2] Amazon.com Inc. (AMZN) - Amazon is benefiting from growth in Amazon Web Services (AWS), which contributed $33.01 billion in Q3 2025, up 20.2% year over year [11] - Online sales and subscription revenues increased by 9.8% and 11.5% year over year, respectively, while advertising revenue climbed 23.5% [12] - Expected revenue and earnings growth rates for next year are 11.2% and 9.9%, respectively, with a 2.6% improvement in earnings estimates over the last 30 days [14] Walmart Inc. (WMT) - Walmart's diversified business model and strong omnichannel strategy have boosted traffic across physical and digital platforms [15] - The company has enhanced its delivery capabilities, including partnerships and new services, leading to steady grocery market share gains [16] - Expected revenue and earnings growth rates for next year are 4.4% and 12.5%, respectively, with a 0.7% improvement in earnings estimates over the last 60 days [17] Tapestry Inc. (TPR) - Tapestry is experiencing growth driven by strong engagement from Gen Z and millennials, with significant expansion in North America, Europe, and Greater China [18] - The company's international business saw a 10% year-over-year growth in Europe and an 18% surge in Greater China [19] - Expected revenue and earnings growth rates for the current year are 3.4% and 9.5%, respectively, with a 1.6% improvement in earnings estimates over the last seven days [20] Dollar General Corp. (DG) - Dollar General's growth is supported by disciplined cost management and a customer-centric model, with a focus on value pricing and supply-chain optimization [21] - The company is expanding its omnichannel presence through partnerships, which is driving higher store traffic and basket sizes [22] - Expected revenue and earnings growth rates for next year are 4.2% and 8.4%, respectively, with a 0.8% improvement in earnings estimates over the last 60 days [24] Expedia Group Inc. (EXPE) - Expedia benefits from a strong platform model that enhances customer insights and strengthens supplier relationships, driving revenue growth [25] - The company's diverse brand portfolio allows it to cater to a wide range of global traveler needs, boosting traffic and bookings [26] - Expected revenue and earnings growth rates for next year are 2% and 17.8%, respectively, with a 1.2% improvement in earnings estimates over the last 30 days [26]

Core Viewpoint - Investors are evaluating the value opportunities between Expedia (EXPE) and MercadoLibre (MELI), with current analysis suggesting that EXPE presents a better value option due to its stronger earnings outlook and favorable valuation metrics [1][7]. Valuation Metrics - EXPE has a forward P/E ratio of 18.02, significantly lower than MELI's forward P/E of 52.36, indicating that EXPE may be undervalued relative to MELI [5]. - The PEG ratio for EXPE is 1.08, while MELI's PEG ratio is 1.51, suggesting that EXPE's expected earnings growth is more favorable compared to its price [5]. - EXPE's P/B ratio stands at 12.32, compared to MELI's P/B of 17.19, further supporting the notion that EXPE is a more attractive investment based on traditional valuation metrics [6]. Earnings Outlook - EXPE holds a Zacks Rank of 2 (Buy), indicating a positive earnings estimate revision trend, while MELI has a Zacks Rank of 4 (Sell), reflecting a less favorable earnings outlook [3]. - The solid earnings outlook for EXPE, combined with its favorable valuation figures, positions it as the superior value option in the current market [7].

Core Viewpoint - Expedia's stock has surged following strong quarterly results, reflecting improved travel demand and positive investor sentiment [1][6]. Financial Performance - Revenue for the third quarter increased by 9% year-over-year, reaching just over $4.4 billion, surpassing Wall Street's estimate of $4.3 billion [3]. - Earnings per share were reported at $7.57, which is 23% higher than the previous year and 9% above the expected $6.95 [3]. Growth Metrics - The company experienced an 11% year-over-year growth in booked room nights, marking the fastest growth rate in over three years, driven by business-to-business sales [4]. Guidance Update - Management raised the full-year 2025 revenue growth guidance to 6%-7%, up from the previous forecast of 3%-5% [5]. - Gross bookings for the year are now expected to increase by 7%, compared to the earlier prediction of 3%-5% [5]. Market Reaction - The positive quarterly performance and revised guidance have led to a significant increase in stock price, with a 21% rise since November 5 [1][2].

Market Overview - The week experienced significant market fluctuations, with major indices pushed into the red due to debates over data centers and excessive tech stock valuations [1] - The S&P 500 declined by 1.6%, the Nasdaq Composite fell by 3%, the Dow Jones Industrial Average decreased by 1.2%, and the Russell 2000 was down by 1.9% over the week [7] Gold and Volatility - Gold prices soared, closing above $4000, contributing to a modest gain of 0.3% for the week [2] - The Vix CBOE Volatility Index closed at 19, indicating a 9% increase this week, suggesting relative calm despite market volatility [2] Housing Market Insights - The housing market showed mixed signals, with a decline in house sales but an increase in median prices in 77% of metro areas [3] - Economic uncertainty is leading to a shift in population and jobs towards the southern regions of the U.S., despite rising job cuts [4] Labor Market Trends - Job cuts in the U.S. reached 153,074 in October, marking a 175% increase from the previous year and a 183% increase from the month prior [4] - Major companies such as Amazon, UPS, General Motors, and Target have conducted layoffs, reflecting a broader trend in the labor market [5] Airline Industry Adjustments - Airlines are cutting flights by 10% at 40 airports to manage reduced personnel and alleviate pressure on air traffic controllers [6]