Jim Cramer Used Expedia To Go Against The Trend For This Major Company

Jim Cramer noticed that Expedia Group Inc. (NASDAQ:EXPE) shares had surged 58% in the last year and 13.5% year-to-date. The company reported stronger-than-expected Q2 earnings, beating estimates with $4.32 billion in revenue and $5.76 in adjusted profit per share. Notably, Expedia raised its full-year revenue and bookings forecasts.

The new revenue guidance of $16.05 billion to $16.22 billion and bookings forecast of $129.5 billion to $130.8 billion indicated a robust travel industry despite high gasoline prices. Cramer praised Expedia's optimism and mentioned the potential of American Express Company (NYSE:AXP) as a counterplay. American Express had posted a beat in its Q2 earnings but kept its full-year profit guidance steady.

While Cramer favored Expedia, he highlighted the broader B2B aspect of Expedia's business and compared it favorably to American Express' premium customer base. Hedge funds showed more interest in American Express, but the author believed AI stocks had greater promise for higher returns with limited downside risk.