E-commerce and online travel bookings projected to show strong growth in the third quarter

Merrill Lynch expects e-commerce and online travel bookings to show strong growth in the third quarter, according to Forbes.

The research firm estimates 21% U.S. online e-commerce growth and 19% U.S. online travel bookings growth in the calendar third quarter, exceeding total domestic travel and spending growth expectations of 6% to 8% and 4% to 5%, respectively, according to Forbes. 

Also, Merrill Lynch said its best ideas for the sector are eBay, IAC/InterActiveCorp and Expedia.

The research firm reportedly said eBay is its best third-quarter earnings idea because the company has third-quarter margin upside, easier comparisons in the fourth and first quarters and is experiencing seasonal acceleration in listings.
“We think risk reward for InterActiveCorp remains favorable and, given negative sentiment, we have become more positive on Expedia,” Merrill said. The report added that Merrill reiterated “buy” ratings on eBay, InterActiveCorp and Sabre and maintained “neutral” ratings on Amazon and Expedia.