I honestly didn’t see this coming, but hey life comes at you fast. Which is why Uber is now mulling over the thought of acquiring Expedia (of all people). That’s right, the same company that just picked me up from the bar last weekend after drowning my sorrows following a Texas Longhorn a$$ whooping on my Sooners, is now thinking about dropping tens of billions on a friggin travel booking site. 

Live view of me on Saturday (Source: Giphy) 

The result? The market went haywire with Expedia shares shooting up 7.7% after hours, while Uber dropped 3.7% on the news. A little Wall Street Logic 101 for ya (lol). 

In short, according to our friends over at the Financial Times, Uber has been chatting with advisors about a potential $20 billion acquisition on Expedia. This would effectively be Ubers biggest deal ever—blowing its previous Postmates, Drizly, and Transplace acquisitions out of the water. 

(Source: Financial Times) 

Now ICYMI, Uber’s been on a tear lately, trying to transform itself into a “super app,” like WeChat or, you know, basically what every other tech company is trying to do. For this reason, CEO Dara Khosrowshahi, the man who steered Expedia for 12 years before jumping ship to Uber, is obviously at the center of this soap opera. 

Dara Khosrowhahi (Source: Financial Times) 

Plus, as it turns out, the guy is still on Expedia’s board, which means if Uber does decide to make a move, it’ll likely be a friendly one. Of course, Dara will have to step aside from the deal talks because, well, conflicts of interest and all - but you can bet he’s got some serious insight into how this might play out. 

So with that said, what's in it for Uber here? Well apparently, Uber isn’t just about getting you from Point A to Point B anymore. It’s about getting you everything—from your soggy midnight burrito to your next vacation. Need a ride to the airport? Uber’s got you. Need a flight to Bali? Uber wants to handle that, too. By adding Expedia’s travel booking technology to its ever-expanding portfolio, Uber would be one step closer to its goal of becoming the ultimate one-stop shop for all of your logistical needs.

(Source: Yahoo Finance) 

Now while that may be wishful thinking to some, consumers may be here for it as the ride-hailing giant is fresh off an 85% surge in its stock price over the past year, bringing its market cap to a cool $172 billion. Which also just so happens to be almost nine times Expedia’s valuation of $20 billion. So yeah, Uber’s got the cash—or at least the stock momentum—to make this happen. 

But, but, but… “Uber tanked on the news though?” Correct. Which is why when it comes to investors, they are a bit torn. On one hand, the acquisition could be a game-changer, allowing Uber to diversify beyond ride-hailing and food delivery. On the other hand, some folks are probably sweating over whether Uber can pull off such a massive deal without screwing up its thicc and juicy investment-grade credit rating. And they aren’t wrong. Uber just got its house in order, posting its first-ever full year of operating profitability in February. So naturally, the last thing investors want is for Uber to blow that on a risky deal.

(Source: Forbes) 

Meanwhile, Expedia’s stock is loving the attention, jumping 7.7% and hitting a two-year high. The travel company has been riding the post-pandemic tourism wave, pulling in a hefty $12.8 billion in revenue last year. But even Expedia has admitted that travel demand is slowing, so the idea of a big buyout from a cash-flush suitor like Uber is probably music to its shareholders’ ears.

So given all of this, what happens next? Well, honestly, your guess is as good as mine. Uber hasn’t made any formal approach to Expedia yet, and the whole thing could fizzle out before it even begins. But if it does happen, it’ll be a massive disruption. Uber gets more firepower in its quest to become the ultimate super app, and Expedia gets a lifeline before the travel slowdown bites too hard. Match made in heaven.

(Source: Giphy) 

Now whether you see it as a match made in heaven, or a dumpster of sh^t just ready to be lit on fire… Well, only time will tell us for sure. But in the meantime, keep an eye on both of these stocks, especially as this kind of news has proven to be an explosive driver for Uber and Expedia. 

In the end, stay safe and stay frosty, friends! Until next time…

P.S. Can someone say 203% winner?! That’s right, yesterdays alert on $QNRX  went full on nuclear and premium subscribers caught wind of this monster at $0.51 before it RIPPED to $1.56 in less than 4 hours! Click here now to make sure you’re in on the next one… don’t say I didn’t warn ya! 

Stocks.News holds positions in Uber as mentioned in the article.