Unpacking Q3 Earnings: Booking (NASDAQ:BKNG) In The Context Of Other Consumer Internet Stocks

Let’s dig into the relative performance of Booking (NASDAQ:BKNG) and its peers as we unravel the now-completed Q3 consumer internet earnings season.

The ways people shop, transport, communicate, learn and play are undergoing a tremendous, technology-enabled change. Consumer internet companies are playing a key role in lives being transformed, simplified and made more accessible.

The 47 consumer internet stocks we track reported a satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 2.1% while next quarter’s revenue guidance was in line.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 7.4% since the latest earnings results.

Booking (NASDAQ:BKNG)

Formerly known as The Priceline Group, Booking Holdings (NASDAQ:BKNG) is the world’s largest online travel agency.

Booking reported revenues of $9.01 billion, up 12.7% year on year. This print exceeded analysts’ expectations by 3.1%. Overall, it was a strong quarter for the company with a solid beat of analysts’ EBITDA estimates and a decent beat of analysts’ revenue estimates.

Unsurprisingly, the stock is down 7.7% since reporting and currently trades at $4,726.

We think Booking is a good business, but is it a buy today? Read our full report here, it’s free for active Edge members.

Best Q3: EverQuote (NASDAQ:EVER)

Aiming to simplify a once complicated process, EverQuote (NASDAQ:EVER) is an online insurance marketplace where consumers can compare and purchase various types of insurance from different providers

EverQuote reported revenues of $173.9 million, up 20.3% year on year, outperforming analysts’ expectations by 4.3%. The business had an exceptional quarter with a solid beat of analysts’ EBITDA estimates and revenue guidance for next quarter exceeding analysts’ expectations.

The market seems happy with the results as the stock is up 6% since reporting. It currently trades at $23.76.

Is now the time to buy EverQuote? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: ACV Auctions (NYSE:ACVA)

Founded in 2014, ACV Auctions (NASDAQ:ACVA) is an online auction marketplace for car dealers and wholesalers to buy and sell used cars.

ACV Auctions reported revenues of $199.6 million, up 16.5% year on year, in line with analysts’ expectations. It was a disappointing quarter as it posted full-year revenue guidance slightly missing analysts’ expectations and full-year EBITDA guidance missing analysts’ expectations significantly.

As expected, the stock is down 18.5% since the results and currently trades at $6.64.

Read our full analysis of ACV Auctions’s results here.

Netflix (NASDAQ:NFLX)

Launched by Reed Hastings as a DVD mail rental company until its famous pivot to streaming in 2007, Netflix (NASDAQ: NFLX) is a pioneering streaming content platform.

Netflix reported revenues of $11.51 billion, up 17.2% year on year. This print was in line with analysts’ expectations. Zooming out, it was a slower quarter as it logged a significant miss of analysts’ EBITDA estimates and revenue in line with analysts’ estimates.

The company reported 317.3 million users, up 12.2% year on year. The stock is down 11.1% since reporting and currently trades at $110.46.

Read our full, actionable report on Netflix here, it’s free for active Edge members.

Cars.com (NYSE:CARS)

Originally started as a joint venture between several media companies including The Washington Post and The New York Times, Cars.com (NYSE:CARS) is a digital marketplace that connects new and used car buyers and sellers.

Cars.com reported revenues of $181.6 million, up 1.1% year on year. This result met analysts’ expectations. Aside from that, it was a mixed quarter as it failed to impress in some other areas of the business.

The company reported 19,526 active buyers, up 1.4% year on year. The stock is up 9.9% since reporting and currently trades at $11.44.

Read our full, actionable report on Cars.com here, it’s free for active Edge members.

Market Update

In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.

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