Stock of the Day

May 27, 2024

Expedia Group (EXPE)

$288.95
-$2.92 (-1.0%)
Market Cap: $34.68B

About Expedia Group

Expedia Group, Inc. operates as an online travel company in the United States and internationally. The company operates through B2C, B2B, and trivago segments. Its B2C segment includes Brand Expedia, a full-service online travel brand offers various travel products and services; Hotels.com for lodging accommodations; Vrbo, an online marketplace for the alternative accommodations; Orbitz, Travelocity, Wotif Group, ebookers, CheapTickets, Hotwire.com and CarRentals.com. The company's B2B segment provides various travel and non-travel companies including airlines, offline travel agents, online retailers, corporate travel management, and financial institutions who leverage its travel technology and tap into its diverse supply to augment their offerings and market Expedia Group rates and availabilities to its travelers. Its trivago segment, a hotel metasearch website, which send referrals to online travel companies and travel service providers from hotel metasearch websites. In addition, the company provides brand advertising through online and offline channels, loyalty programs, mobile apps, and search engine marketing, as well as metasearch, social media, direct and personalized traveler communications on its websites, and through direct e-mail communication with its travelers. The company was formerly known as Expedia, Inc. and changed its name to Expedia Group, Inc. in March 2018. Expedia Group, Inc. was founded in 1996 and is headquartered in Seattle, Washington.

Expedia Group Bull Case

Here are some ways that investors could benefit from investing in Expedia Group, Inc.:

  • Expedia Group, Inc. recently reported strong financial performance in its most recent quarter, with earnings per share of $5.76 beating the consensus estimate of $5.22 and revenue of $4.32 billion exceeding expectations of $4.17 billion, demonstrating robust top-line growth of 14.0% year-over-year.
  • The company has secured a significant multi-year partnership as the Official Travel Partner of the NHL in the U.S. and Canada, which provides expanded marketing rights and brand visibility that could drive increased user engagement and bookings across its platforms.
  • Expedia Group, Inc. is currently trading at $274.69, which is below the consensus price target of $315.24 set by sell-side analysts, suggesting potential upside for investors who believe the market is undervaluing the company's growth trajectory.
  • The company continues to innovate its loyalty program, One Key, by adding new perks such as lounge access and fare protection, which enhances customer retention and differentiates its service offering in a competitive online travel market.
  • Institutional interest remains strong, with 90.76% of the stock owned by institutional investors and hedge funds, and recent filings show new investments from firms like Boyce & Associates Wealth Consulting Inc., indicating confidence in the company's long-term stability.

Expedia Group Bear Case

Investors should be bearish about investing in Expedia Group, Inc. for these reasons:

  • Legal risks are increasing, as a recent lawsuit alleges that Expedia Group, Inc. controls a significant portion of online hotel bookings and is responsible for driving hotel prices 15-30% higher, which could lead to regulatory scrutiny or financial liabilities.
  • Insider selling activity has been notable, with corporate insiders selling 11,950 shares worth approximately $3.88 million over the last three months, including significant sales by the Chief Accounting Officer and other executives, which may signal a lack of confidence in near-term stock appreciation.
  • The stock has a high beta of 1.36, indicating that it is more volatile than the overall market, and it has experienced significant price swings recently, including a gap down of over 20% in May 2026, which poses a higher risk of capital loss for investors.
  • Analyst sentiment is mixed, with a consensus rating of "Hold" and a recent downgrade from Morgan Stanley to "underweight" with a price target of $235.00, reflecting concerns about the company's valuation or competitive positioning.
  • Short interest has increased in recent months, with shares shorted rising to 7,916,722 as of September 30, 2026, suggesting that a portion of the market is betting against the stock's future performance.
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