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8 years after the first Market Edge Podcast, Greece is again the hot topic. Read More...
  • (1:00) – Is The Global Re-Opening Benefiting Greece Tourism?

  • (7:30) – Digital Nomads and Retirement Visa’s Impact on The Housing Market

  • (14:20) – The Greece Brain Drain: Is The Trend Reversing?

  • (26:05) – Greece Austerity Measures Impact On The Economy

  • (34:45) – Advice For Investors Heading Towards Retirement

  • 41:00) – Episode Roundup: GOOGL, MSFT, AMZN, ABNB, EXPE, BKNG

  • [email protected],.com

Welcome to Episode #345 of the Zacks Market Edge Podcast.

Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.

This week, Tracey is joined by Zacks Product Manager, Harry Kougais, who was also the guest on her very first show more than 7 years ago.

Is it Time to Invest in Greece (Again)?

Zacks Market Edge Podcast Episode #1, posted on Oct 13, 2015, was called “Is it Time to Invest in Greece?”. Some of you might remember that Greece went through a tough round of austerity measures after the Great Recession and was still recovering in 2015. Additionally, while tourism was hitting all-time highs, the problem of over tourism was real.

Tourist hot spot, Santorini, moved to limit the number of cruise ships it allowed in port as some of its towns were getting overwhelmed with day tourists.

But the pandemic put a pause on tourism across Greece, and the world, for over 2 years.

What will it look like going forward?

Microsoft and Alphabet Make Investments

In 2015, Tracey and Harry talked about the Greek Millennial “brain drain” to other job centers like Berlin and London, as that’s where the jobs and opportunities were.

But while there is still some of that happening in 2023, the Greek government is pushing for more digital jobs. In 2023, there are global businesses coming to Greece.

In 2020, Microsoft MSFT announced plans to open a data center in Greece, and in Nov 2022, Alphabet GOOGL announced it was also investing in the country with the possibility of hiring as many as 20,000 by the end of the decade.

Microsoft has over 200,000 employees worldwide while Alphabet has about 187,000.

Tourism Still the Leading Industry

But tourism is still the leading industry, both on mainland Greece and the islands.

1.      Airbnb ABNB

Airbnb is now a big business globally, especially in Greece. Harry discussed how some investors are buying up entire buildings in, and around Athens, to put them on Airbnb.

Shares of Airbnb have plunged in the last year, however. They’re down 33.6% during that time but they’ve rallied in the last month, adding 22.1%.

Airbnb still isn’t cheap on a forward P/E basis. It trades at 37.6x.

Should you be investing in Airbnb for its international growth?

2.      Expedia Group, Inc. EXPE

Expedia has been around for several decades, but now that the global travel industry has reopened, the online travel company is back in the spotlight.

Expedia shares are also down big in the last year, falling 33.7%. And they, too, have rallied in the last month as the airlines report strong bookings through the summer months, an indication that people are still eager to travel. Shares are up 33% during that time.

But Expedia IS actually cheap on a forward P/E basis, with a P/E of just 12.6.

Should Expedia be on your short list as a way to invest in global growth?

3.      Booking Holdings Inc. BKNG

Booking Holdings is one of the world’s largest online travel companies. You can book Greek hotels on it.

Over the last year, shares of Booking are actually up, but just 2.4%. In the last month, like Expedia and Airbnb, Booking shares have soared 22%.

Booking is more expensive than Expedia, on a P/E basis, with a forward P/E of 20.

Is Booking getting ready to break out in 2023 as global travel picks up momentum?

What Else do you Need to Know About Cashing in on Greece’s Growth?

Listen to this week’s podcast to find out.

[In full disclosure, Tracey owns shares of MSFT, GOOGL and BKNG in her personal portfolio and EXPE in Zacks Value Investor portfolio.]

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Microsoft Corporation (MSFT) : Free Stock Analysis Report

Expedia Group, Inc. (EXPE) : Free Stock Analysis Report

Alphabet Inc. (GOOGL) : Free Stock Analysis Report

Booking Holdings Inc. (BKNG) : Free Stock Analysis Report

Airbnb, Inc. (ABNB) : Free Stock Analysis Report

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