Tale of two travel stocks: Expedia and TripAdvisor are seeing very different months

It's the tale of two travel stocks.

Shares of online booking companies TripAdvisor and Expedia have seen a massive divergence this month, and one technician says the charts are pointing to trouble ahead for one name in particular: TripAdvisor.

So far in February, TripAdvisor has been on a tear — surging 23 percent and is the second best-performing stock in the S&P 500. This as rival Expedia has fallen nearly 19 percent and is the second worst-performing stock in the S&P 500.

Ari Wald, head of technical analysis at Oppenheimer, explained that from a technical standpoint, there is reason to be skeptical of TripAdvisor's recent rally. "This stock is still making lower highs for the past few years, I am very skeptical of this move, and if it's truly marking a change in the long-term trend," Wald said Tuesday on CNBC's "Trading Nation."

While Wald doesn't believe either the TripAdvisor or Expedia charts show strong long-term trends, between the two, "TripAdvisor is overbought in a poor trend, so I think TripAdvisor is the tactical play here to sell. Forty-six dollars is the key resistance level."

Furthermore, Boris Schlossberg, managing director at BK Asset Management, said Tuesday on "Trading Nation" that while neither stock is a buy right now, "the bullish case for both is if you're truly a big believer in a massive bull move this year in the market, and that the tax cut is going to increase spending on travel."

TripAdvisor and Expedia shares were roughly unchanged midday Wednesday.


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Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Sara Eisen

Sara Eisen joined CNBC in December 2013 as a correspondent, focusing on the global consumer. She is co-anchor of the 10AM ET hour of CNBC's "Squawk on the Street" (M-F, 9AM-11AM ET), broadcast from Post 9 at the New York Stock Exchange.

In March 2018, Eisen was named co-anchor of CNBC's "Power Lunch" (M-F, 1PM-3PM ET), which broadcasts from CNBC Global Headquarters in Englewood Cliffs, N.J.

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