Live Expedia Group (Nasdaq: EXPE): Here’s Why the Stock Is Tanking Over 7%
Key Points
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Expedia shares are plummeting by 7% today after reporting Q1 earnings.
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Expedia’s woes are part of a broader travel industry slowdown.
Live Updates
Soft U.S. Travel Demand
Expedia management said the following of U.S. travel demand on the company’s Q1 earnings call: “In particular, demand in the US was softer than expected which was a headwind given two-thirds of our business comes from the US point of sale. We also noticed softness in demand for inbound travel into the US which was down 7%. As part of that, inbound bookings from Canada fell nearly 30%.”
Expedia Cool Under Pressure
Expedia shares remain lower by a steep 7.7% on the day. Wall Street analysts are responding to weaker U.S. travel demand, including one firm that sees an opportunity. Barclays analysts have reportedly tweaked their price target higher on the stock to $190 from $187 per share, sticking with an “equal rating” on the stock.
Wall Street Response
Wedbush Securities analysts responded to Expedia’s earnings print, saying that shares will maintain their balanced risk/reward profile. Wedbush reportedly reduced the price target on EXPE shares to $165 per share but kept a “neutral” rating on the stock.
Check back for frequent live updates on this story.
Online travel-platform stock Expedia Group (Nasdaq: EXPE) is one of today’s losing stocks, shaving off over 7% of it value during the session. EXPE stock has fallen below the $160-per share level for a market cap of $19.9 billion. Trading volume is stronger than usual at 3.6 million shares compared with average volume of 2.3 million shares.
There are a few negative forces at play dragging EXPE stock lower today. EXPE is getting punished along with the broader tourism sector, owing to an economic slowdown that is likely to cause a travel snarl during what is typically a booming summer season. Perhaps chief among the negative catalysts today is an analyst downgrade out of Piper Sandler, which advises investors to steer clear of the stock for now on the heels of Expedia’s Q1 earnings results.
Summer Travel Slowdown
Expedia reported better than expected Q1 earnings per share, surpassing Wall Street estimates, while revenue fell short of consensus estimates on weakening U.S. travel demand. Making matters worse, Expedia reduced its 2025 gross booking guidance as it prepares to feel the pain from the economic slowdown. Expedia management warned of a slowdown in U.S. travel bookings, particularly from Canada.
Piper Sandler analysts hit Expedia stock with a downgrade, lowering shares from “neutral” to “underweight” with a price target of $135, reflecting downside risk of 13.4%. Piper Sandler analysts warned things could get worse before they get better, writing, “The commentary around U.S. inbound travel & the B2C business was discouraging and suggests a tough slog from here. It could also get incrementally worse.”
What Now?
Expedia’s issues are part of a wider downward trend in the travel industry, owing to the economic slowdown fueled in part by tariffs. As long as the economic outlook remains uncertain, Expedia’s stock could remain under pressure. Investors who hold the stock should do so with their eyes wide open because if Wall Street analysts are right, EXPE shares have further to fall before all is said and done.
Gerelyn Terzo is the author of dividend investing handbook "Dividend Investing Strategies: How to Have Your Cake & Eat It Too." A veteran financial journalist, she covers agri-finance for outlets like Global AgInvesting and the broader stock market and personal finance for 24/7 Wall Street. She began at CNBC and later helped launch Fox Business in New York. Gerelyn currently resides in Woodland Park, Colorado and dabbles in nature photography as a hobby.
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