Expedia Group Inc (NASDAQ:EXPE) reported better-than-expected financial results on Tuesday, but the stock still got crushed.
The move lower is telling of the current state of the market, Ritholtz Wealth Management's Josh Brown said Tuesday on CNBC's "Fast Money Halftime Report."
EXPE Earnings: "Expedia had actually an earnings report where their revenue doubled, up 100% year-over-year, but for whatever reason, the details weren't good enough," Brown said.
"That stock is now acting like all of the rest of the technology stocks despite the fact that [it's in] literally the hottest category of all consumer spending right now: travel."
Travel and consumer discretionary stocks have to start catching some bids if the market is going to hold up here, he noted, adding that there is some hesitancy to step in and buy, which can be seen in Expedia today.
See Also: Here's How Much You Would Have Made Owning Expedia Group Stock In The Last 15 Years
Why It Matters: "We're in a bear market and one of the things that bear markets do to you is they grind you down," Brown said.
Bear markets test investor psychology with increased volatility often leading to intraday reversals. Bear markets also force people to cost average down in names they maintain conviction in and even draw people into the market from the sidelines as valuations become more appealing, he said. Most of the time, the market continues to grind lower when it looks like it's bottoming.
"The market is not satisfied until everybody loses," Brown emphasized.
EXPE Price Action: Expedia has traded between $136.77 and $217.72 over a 52-week period. The stock was down 13.7% at $150.88 at press time, according to data from Benzinga Pro.
Photo: Renan_Brun from Pixabay.
