Expedia (EXPE) AI Stock Analysis

• Market Cap: $26.24B
• Dividend Yield: 0.56%
• Average Volume (3M): 1.69M
• Price to Earnings (P/E): 26.0
• Beta (1Y): 1.54
• Revenue Growth: 5.69%
• EPS Growth: 47.33%
• Country: US
• Employees: 16,500
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Travel Services
• EPS (TTM): 4.24
• Shares Outstanding: 118,192,130
• 10 Day Avg. Volume: 1,571,585
• 30 Day Avg. Volume: 1,686,488
• PEG Ratio: 0.28
• Price to Book (P/B): 15.73
• Price to Sales (P/S): 1.79
• P/FCF Ratio: 10.52
• Enterprise Value/Market Cap: 0.81
• Enterprise Value/Revenue: 1.52
• Enterprise Value/Gross Profit: 1.70
• Enterprise Value/Ebitda: 8.46
• 1Y Price Target: $225.40
• Price Target Upside: 5.42% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 27
• EPS Forecast (FY): 14.27
• Revenue Forecast (FY): $14.33B

• Rating: 72 Outperform
• Price Target: $229.00 ▲(7.10% Upside)

Expedia's strong earnings call performance and bullish technical indicators are the most significant factors driving the score. Financial performance is stable but impacted by high leverage and declining cash flow growth. Valuation suggests the stock may be overvalued, which slightly tempers the overall score.

Positive Factors

International Growth

Expedia's strong international growth, particularly in Asia, enhances its global market position and diversifies revenue streams, reducing reliance on any single market.

B2B and Advertising Performance

Consistent growth in B2B and advertising segments strengthens Expedia's revenue base and supports long-term profitability, leveraging strategic partnerships and a broad customer base.

AI Enhancements

AI-driven improvements enhance user experience and conversion rates, supporting sustainable revenue growth and competitive advantage in the online travel market.

Negative Factors

High Leverage

Significant leverage poses financial risk, potentially impacting liquidity and limiting strategic flexibility, necessitating focus on debt reduction for long-term stability.

Declining Cash Flow Growth

Decreasing cash flow growth could constrain future investments and operational flexibility, impacting long-term growth and financial health.

Soft U.S. Travel Market

A muted U.S. travel market may hinder revenue growth in a key region, affecting overall performance and necessitating strategic adjustments to mitigate impact.

Expedia Business Overview & Revenue Model

Company Description

Expedia Group, Inc. operates as an online travel company in the United States and internationally. The company operates through Retail, B2B, and trivago segments. Its brand portfolio include Brand Expedia, a full-service online travel brand with localized websites; Hotels.com for marketing and distributing lodging accommodations; Vrbo, an online marketplace for the alternative accommodations; Orbitz, Travelocity, and CheapTickets travel websites; ebookers, an online EMEA travel agent for travelers an array of travel options; Hotwire, which offers travel booking services; CarRentals.com, an online car rental booking service; Classic Vacations, a luxury travel specialist; and Expedia Cruise, a provider of advice for travelers booking cruises. The company's brand portfolio also comprise Expedia Partner Solutions, a business-to-business brand that provides travel and non-travel vertical, which includes corporate travel management, airlines, travel agents, online retailers and financial institutions; and Egencia that provides corporate travel management services. In addition, its brand portfolio consists of Trivago, a hotel metasearch website, which send referrals to online travel companies and travel service providers from hotel metasearch websites; and Expedia Group Media solutions. Further, the company provides online travel services through its Wotif.com, lastminute.com.au, travel.com.au, Wotif.co.nz, and lastminute.co.nz brands; loyalty programs; hotel accommodations and alternative accommodations; and advertising and media services. It serves leisure and corporate 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.

How the Company Makes Money

Expedia primarily generates revenue through a variety of channels, including transaction fees, commissions, and advertising revenue. The company's core revenue model involves earning commissions from hotel bookings, airline tickets, and car rentals made through its platforms. Additionally, Expedia offers vacation rental services through Vrbo, which also contributes to its commission-based earnings. The company has established significant partnerships with airlines, hotels, and travel service providers, which enhance its inventory and offerings. Moreover, Expedia earns advertising revenue from travel-related businesses that utilize its sites for promoting their services. The combination of these revenue streams, along with a focus on expanding its brand presence and enhancing user engagement, drives Expedia's financial performance.

Expedia Financial Statement Overview

Summary

Expedia shows strong profitability and operational efficiency with consistent revenue and profit margins. However, high leverage poses a potential risk, and declining free cash flow growth could impact future liquidity. The company is financially stable but should focus on reducing debt levels to mitigate risk.

Income Statement

Expedia's income statement shows strong gross profit margins consistently above 85%, indicating effective cost management. The TTM net profit margin is healthy at 7.94%, although it has decreased from the previous year. Revenue growth is modest at 1.65% TTM, suggesting a stable but slow growth trajectory. The EBIT and EBITDA margins are solid, reflecting good operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 7.75 TTM, indicating significant leverage which could pose financial risk. However, the return on equity is robust at 93% TTM, suggesting effective use of equity to generate profits. The equity ratio is low, highlighting reliance on debt financing.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth by 13.09% TTM, which is concerning. However, the operating cash flow to net income ratio is positive, indicating that the company generates sufficient cash from operations relative to its net income. The free cash flow to net income ratio is strong, suggesting good cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.02B	13.69B	12.84B	11.67B	8.60B	5.20B
Gross Profit	12.56B	12.25B	11.27B	10.01B	7.08B	3.52B
EBITDA	2.52B	2.63B	2.07B	1.61B	1.13B	-1.90B
Net Income	1.11B	1.23B	797.00M	352.00M	12.00M	-2.61B
Balance Sheet
Total Assets	26.98B	22.39B	21.64B	21.56B	21.55B	18.69B
Cash, Cash Equivalents and Short-Term Investments	6.67B	4.48B	4.25B	4.14B	4.31B	3.39B
Total Debt	6.48B	6.53B	6.57B	6.55B	8.81B	8.73B
Total Liabilities	24.89B	19.59B	18.86B	17.83B	18.00B	14.66B
Stockholders Equity	836.00M	1.56B	1.53B	2.28B	2.06B	2.53B
Cash Flow
Free Cash Flow	2.56B	2.33B	1.84B	2.78B	3.08B	-4.63B
Operating Cash Flow	2.78B	3.08B	2.69B	3.44B	3.75B	-3.83B
Investing Cash Flow	-1.03B	-1.26B	-800.00M	-580.00M	-931.00M	-263.00M
Financing Cash Flow	-1.78B	-1.75B	-2.10B	-2.62B	-973.00M	4.08B

Expedia Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 213.81
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EXPE, the sentiment is Neutral. The current price of 213.81 is below the 20-day moving average (MA) of 218.38, below the 50-day MA of 218.48, and above the 200-day MA of 186.03, indicating a neutral trend. The MACD of -0.23 indicates Positive momentum. The RSI at 45.68 is Neutral, neither overbought nor oversold. The STOCH value of 21.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for EXPE.

Expedia Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ABNB	79 Outperform	$76.03B	29.52	33.26%	―	10.23%	-44.56%
TCOM	73 Outperform	$46.51B	19.37	12.94%	0.40%	17.73%	27.95%
EXPE	72 Outperform	$26.24B	25.96	129.04%	0.56%	5.69%	47.33%
MMYT	65 Neutral	$10.21B	118.54	16.66%	―	14.55%	-68.46%
BKNG	63 Neutral	$160.90B	32.44	―	0.74%	12.96%	3.66%
TRIP	62 Neutral	$1.72B	32.43	8.76%	―	3.03%	187.03%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Expedia Corporate Events

Expedia Group Surpasses Expectations in Q2 2025 Earnings Call

Expedia Group’s recent earnings call painted a picture of robust performance, with the company surpassing expectations in several key areas. The sentiment was largely positive, driven by strong results in the B2B and advertising segments, as well as international growth. However, challenges in the U.S. travel market, particularly affecting Vrbo and Hotels.com, were noted. The strategic use of AI was highlighted as a promising avenue for future efficiency gains.

Expedia Group Reports Strong Q2 2025 Results

Expedia Group, Inc. is a leading global travel platform that facilitates travel experiences through its consumer brands such as Expedia, Hotels.com, and Vrbo, and offers B2B solutions to partners worldwide.

Expedia Announces Quarterly Dividend Amid Strong Q2 Results

On August 7, 2025, Expedia Group announced a quarterly cash dividend of $0.40 per share, payable on September 18, 2025. The company reported its second quarter 2025 financial results, highlighting a 5% growth in bookings and a 6% increase in revenue year-over-year. Despite a decrease in GAAP net income by 14%, adjusted net income grew by 16%, and adjusted EBITDA increased by 16% with margin expansion. Expedia repurchased $627 million worth of shares in the quarter and increased its full-year guidance, indicating strong performance driven by growth in B2B and advertising sectors.

The most recent analyst rating on (EXPE) stock is a Hold with a $150.00 price target. To see the full list of analyst forecasts on Expedia stock, see the EXPE Stock Forecast page.