How did EXPE's Q4 earnings surprise impact investor confidence?

Expedia's (EXPE) Q4 earnings surprise had a positive impact on investor confidence, as evidenced by the following factors: 1. **Earnings Surprise**: Expedia reported an EPS surprise of $0.37 for Q4 2024, which was a positive development given the expectations. This surprise indicates that the company's performance exceeded market expectations, which typically boosts investor confidence. |code|Ticker|Name|Date|Revenue Surprise|Revenue Surprise YoY|market_code| |---|---|---|---|---|---|---| |EXPE|EXPE.O|Expedia|2024 Q1|7.9E7|1680|185| |EXPE|EXPE.O|Expedia|2024 Q2|7.0E7|683.3333333333333|185| |EXPE|EXPE.O|Expedia|2024 Q3|-5.0E7|-172.46376811594203|185| |EXPE|EXPE.O|Expedia|2024 Q4|1.1E8|1471.4285714285713|185| 2. **Stock Reaction**: Following the earnings release, Expedia's stock soared to a 52-week high of $190.56, reflecting investor enthusiasm and confidence in the company's performance. This surge suggests that the market was impressed by the company's results, leading to increased confidence among investors. 3. **Full-Year Guidance**: The company raised its full-year guidance, signaling confidence in its future performance. This optimistic outlook further bolstered investor confidence, as it suggests that the company expects continued growth and profitability. 4. **Strong Financial Metrics**: Expedia reported a year-over-year increase of 7% in gross bookings, reaching $27.5 billion, and a 3% rise in revenue to $4.1 billion for Q3 2024. These strong financial metrics, coupled with the earnings surprise, provide a solid foundation for investor confidence. In conclusion, Expedia's Q4 earnings surprise, along with the company's strong financial performance and optimistic guidance, contributed to a boost in investor confidence, as reflected in the stock's positive reaction and the company's overall positive market perception.