Jim Cramer prefers Expedia over Airbnb citing focus on value, guarded outlook for Airbnb

Jim Cramer prefers Expedia over Airbnb due to its laser-focus on value, while Airbnb is making big bets that may not pay off in this environment. Expedia's recent earnings met estimates, and its stock soared, whereas Airbnb saw losses. Cramer also notes that Expedia has a business-to-business division and is focused on its core business, while Airbnb is exploring new opportunities that may be risky.

In a recent investor briefing, CNBC's Jim Cramer offered insights into his preference for Expedia over Airbnb, highlighting key differences in their business strategies and recent performance [1]. Cramer's analysis underscores the importance of focus on core competencies and value in today's market environment.

Both Expedia and Airbnb reported earnings earlier this month, meeting market expectations. However, while Expedia's stock soared, Airbnb experienced losses, indicating a divergence in investor sentiment [1]. Cramer attributes this to Expedia's "laser-focus on value," which he believes is a strong asset in the current market conditions. In contrast, he sees Airbnb making "big bets" that may not necessarily pay off, suggesting a riskier approach.

One significant factor in Cramer's preference for Expedia is its robust business-to-business (B2B) division, which provides a stable revenue stream. This division, coupled with Expedia's core focus on flights, hotels, and rental cars, gives the company a solid foundation for growth. Airbnb, on the other hand, is primarily consumer-focused and is exploring new opportunities beyond its primary home rental business, which may be more risky [1].

Airbnb has recently increased its sales and marketing spend by 18.7% to shift its advertising mix from TV to social media, reflecting a strategic pivot towards digital platforms [3]. This move aligns with the broader trend of consumers using social media for travel inspiration and high-intent purchase decisions. However, Cramer suggests that Airbnb's new endeavors, such as its services division targeting wealthier consumers, represent a riskier strategy compared to Expedia's focus on execution and value.

In conclusion, Jim Cramer's preference for Expedia over Airbnb is rooted in the former's laser-focus on value and core competencies, while the latter's strategic bets and consumer-centric approach may pose greater risks in the current market environment. Investors should carefully consider these factors when evaluating the two companies.

References:
[1] https://www.cnbc.com/2025/08/12/heres-why-jim-cramer-would-pick-expedia-over-airbnb.html
[3] https://www.marketingweek.com/airbnb-advertising-tv-social/