Expedia (EXPE) Stock Forecast & Price Target

Expedia Group has provided guidance indicating potential EBITDA margin expansion of 50-100 basis points, with expected revenue growth of 4-6% for the upcoming quarter. The company has noted that improvements at its Hotels.com and Vrbo brands, which account for over 20% of global bookings, could significantly enhance consolidated growth, particularly as enhanced performance could push consolidated bookings growth to the upper end of the 5-7% range. Additionally, recent trends show positive movements in global site traffic and US receipt sales, with QTD sales growth of 4% and site traffic reflecting a year-over-year improvement, suggesting a favorable outlook for the company's financial performance.

Expedia Group is facing a challenging outlook characterized by a decline in U.S. B2C bookings, which fell by 1-3%, raising concerns about the sustainability of consolidated growth as international and B2B segments may not sufficiently compensate. During the second quarter, U.S. B2C bookings experienced a dip of 1-2%, further exacerbated by underperformance from Hotels.com and Vrbo, which were estimated to be down by mid-single digits. Consequently, these trends led to a year-over-year reduction in revenue of approximately 10%, indicating significant headwinds for the company's overall financial performance.