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Expedia Group Inc. (EXPE) Stock

Expedia Group Inc. Stock Details, Movements and Public Alerts

Expedia Group (EXPE): The $28B Online Travel Pioneer Reimagining Bookings Through AI and Brand Consolidation

When travelers research Caribbean resorts, compare Paris hotel rates, or book Vrbo cabins in the Rockies, Expedia Group's platforms process their journeys—handling 200M+ traveler visits monthly and $100B+ in annual gross bookings. CEO Ariane Gorin, who took the helm in 2024 after leading Expedia Business Services, inherited a company transformed by predecessor Peter Kern's aggressive cost restructuring and technology consolidation. The 2024-2025 strategy focuses on three pillars: AI-powered trip planning that moves beyond search to personalized recommendations, One Key loyalty program unifying rewards across Expedia, Hotels.com, and Vrbo, and a 'traveler-first' approach reducing reliance on Google's expensive marketing funnel. Trading at 13x forward earnings after a 2024 selloff, Expedia offers value investors exposure to travel demand recovery with self-help margin expansion potential—if management executes on the AI and loyalty transformation against formidable competition from Booking Holdings and emerging threats from Google Travel and AI assistants.

52-Week Range

$287.48 - $129.24

-1.40% from high · +119.32% from low

Avg Daily Volume

2,139,074

Latest volume

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

26.37

Above market average

Forward P/E

15.82

Earnings expected to grow

PEG Ratio

0.80

Potentially undervalued

Price to Book

25.77

EV/EBITDA

12.45

EPS (TTM)

$10.66

Price to Sales

2.42

Beta

1.44

Similar volatility to market

How is EXPE valued relative to its earnings and growth?
Expedia Group Inc. trades at a P/E ratio of 26.37, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple. Looking ahead, the forward P/E of 15.82 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 0.80 suggests the stock may be undervalued relative to its growth rate.
What is EXPE's risk profile compared to the market?
With a beta of 1.44, Expedia Group Inc. is roughly as volatile as the market, moving in line with broad market trends. This moderate beta suggests the stock offers market-level returns without excessive volatility. The price-to-book ratio of 25.77 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

9.66%

Operating Margin

25.60%

EBITDA

$2.18B

Return on Equity

53.90%

Return on Assets

5.08%

Revenue Growth (YoY)

8.70%

Earnings Growth (YoY)

45.40%

How profitable and efficient is EXPE's business model?
Expedia Group Inc. achieves a profit margin of 9.66%, meaning it retains $9.66 from every $100 in revenue after all expenses. This represents a solid margin typical of well-run businesses, showing the company can effectively balance revenue generation with cost control. The operating margin of 25.60% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 53.90% and ROA at 5.08%, the company generates strong returns on invested capital.
What are EXPE's recent growth trends?
Expedia Group Inc.'s revenue grew by 8.70% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 45.40% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against TRAVEL SERVICES industry averages for proper context.

Dividend Information

Dividend Per Share

$1.20

Dividend Yield

0.44%

Ex-Dividend Date

Nov 19, 2025

Dividend Date

Dec 11, 2025

What dividend income can investors expect from EXPE?
Expedia Group Inc. offers a dividend yield of 0.44%, paying $1.20 per share annually. This modest yield below 2% suggests the company prioritizes growth investments over current income. While the dividend provides some return, investors are likely attracted more by capital appreciation potential than income generation. To receive the next dividend, shares must be purchased before the ex-dividend date of Nov 19, 2025.
How reliable is EXPE's dividend for long-term investors?
The dividend sustainability can be assessed through the payout ratio - Expedia Group Inc. pays $1.20 per share in dividends against earnings of $10.66 per share, resulting in a payout ratio of 11.26%. This conservative payout below 30% indicates excellent dividend safety with substantial room for future increases. The company retains most earnings for growth while still rewarding shareholders. The next dividend payment is scheduled for Dec 11, 2025.

Company Size & Market

Market Cap

$34.8B

Revenue (TTM)

$14.37B

Revenue/Share (TTM)

$113.31

Shares Outstanding

117.01M

Book Value/Share

$10.87

Asset Type

Common Stock

What is EXPE's market capitalization and position?
Expedia Group Inc. has a market capitalization of $34.8B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 117.01M shares outstanding, the company's ownership is relatively concentrated. As a participant in the TRAVEL SERVICES industry, it competes with other firms in this sector.
How does EXPE's price compare to its book value?
Expedia Group Inc.'s book value per share is $10.87, while the current stock price is $283.45, resulting in a price-to-book (P/B) ratio of 26.08. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

Analyst Ratings

Analyst Target Price

$269.79

4.82% downside potential

Analyst Recommendations

Strong Buy

0

Buy

14

Hold

23

Sell

0

Strong Sell

1

How reliable are analyst predictions for EXPE?
38 analysts cover EXPE with 37% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $269.79 implies -4.8% downside, but targets are often adjusted to follow price moves rather than predict them.
What is the Wall Street consensus on EXPE?
Current analyst recommendations:014 Buy, 23 Hold, 01 Strong Sell. The neutral stance suggests uncertainty or fair valuation at current levels.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Dec 13, 2025, 08:26 AM

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Expedia Group (EXPE) Stock Analysis 2025: Online Travel Investment Guide

The Online Travel Transformation

Expedia Group pioneered online travel booking in 1996 as a division of Microsoft before spinning out and assembling the industry's broadest brand portfolio through acquisitions: Hotels.com (2001), Hotwire (2003), TripAdvisor (2004, later spun off), Orbitz (2015), HomeAway/Vrbo (2015), and Trivago (2012, majority stake). CEO Ariane Gorin, appointed in May 2024, became just the second woman to lead a major online travel agency after rising through Expedia's B2B division. She faces the challenge of executing on predecessor Peter Kern's strategic vision while demonstrating that technology investments translate to profitable growth.

The company's competitive position reflects both historic strengths and structural challenges. Expedia processes bookings for 3 million properties globally and maintains direct relationships with major hotel chains, airlines, and car rental companies. However, Booking Holdings (Booking.com, Priceline, Kayak) commands 40%+ of global online travel market share versus Expedia's approximately 25%. Google's entry into travel metasearch and AI assistants threatens to disintermediate both platforms by capturing travelers earlier in the planning journey. CEO Ariane Gorin's response centers on differentiated AI experiences, unified loyalty rewards, and Vrbo's unique vacation rental inventory that Google and Booking cannot easily replicate.

Business Model & Competitive Moat

Expedia generates revenue primarily through merchant transactions (booking hotels as a principal and reselling with markup), agency commissions (earning fees for facilitating bookings), and advertising (selling placements to hotels and destinations seeking visibility). The merchant model provides higher margins but requires working capital for prepaid inventory; agency model offers capital efficiency but lower take rates. Advertising revenue, growing 15%+ annually, represents an increasingly important high-margin revenue stream as properties pay for premium placement.

Competitive moats derive from supply breadth, technology infrastructure, and loyalty economics. Expedia's 3M+ property relationships span hotels, vacation rentals, flights, and activities—creating one-stop-shop convenience that standalone specialists cannot match. The unified technology platform now powers all brands after years of consolidation, enabling AI deployment at scale. One Key loyalty, with 170M+ members across brands, creates switching costs as travelers accumulate OneKeyCash rewards redeemable across the portfolio. However, these moats face erosion from Booking's superior international footprint and Google's AI-powered trip planning that could bypass traditional OTA interfaces entirely.

Financial Performance

  • •Revenue: $13.5B annually growing 6-8% as travel demand normalizes post-pandemic
  • •Gross Bookings: $100B+ processed through platforms with 12-14% revenue take rate
  • •Profitability: 18-20% adjusted EBITDA margins with path to 22%+ through marketing efficiency
  • •Cash Flow: $1.5-2B annual free cash flow funding buybacks and debt reduction
  • •Capital Return: $2B+ annual share repurchases reducing share count 5%+ annually
  • •Valuation: 13x forward P/E and 8x EV/EBITDA, discount to Booking (18x P/E) reflecting execution risk

Growth Catalysts

  • •AI Trip Planning: Romie AI assistant drives direct bookings by personalizing recommendations beyond commodity search
  • •One Key Momentum: 170M+ loyalty members increasing direct booking mix to 60%+ from 50%, reducing Google dependency
  • •Vrbo Acceleration: Vacation rental platform gains share in $100B+ alternative accommodation market against Airbnb
  • •B2B Expansion: Expedia Partner Solutions powers travel booking for airlines, banks, and employers
  • •International Growth: APAC and Latin America underpenetrated relative to Booking, offering expansion runway

Risks & Challenges

  • •Google Disintermediation: AI-powered search and Google Travel features threaten to capture demand before OTA platforms
  • •Booking Holdings Competition: Larger rival commands superior international share and more aggressive marketing
  • •Marketing Cost Inflation: Customer acquisition costs rising as digital advertising becomes more competitive
  • •Economic Sensitivity: Travel discretionary spending vulnerable to recession, despite post-pandemic demand resilience
  • •Execution Risk: New CEO Ariane Gorin must demonstrate AI and loyalty investments deliver profitable growth

Competitive Landscape

Booking Holdings remains the dominant competitor with 40%+ global market share and superior profitability (30%+ EBITDA margins versus Expedia's 18-20%). Booking.com's strength in European hotels and international markets creates scale advantages that Expedia struggles to match. Airbnb disrupted the accommodation market with its asset-light marketplace model and 7M+ listings, though Vrbo competes effectively in the premium vacation rental segment with 2M+ properties. Trip.com (formerly Ctrip) dominates Chinese outbound travel, limiting Western OTA penetration in the world's largest source market.

Emerging threats from Google and AI platforms concern investors more than traditional competitors. Google Travel's hotel search, flight explorer, and AI-powered planning tools could capture travelers before they reach OTAs. ChatGPT and other AI assistants threaten to replace browsing behavior with conversational trip planning. CEO Ariane Gorin's counter-strategy emphasizes Expedia's exclusive inventory (Vrbo listings), human expertise for complex itineraries, and One Key rewards that AI platforms cannot match. Whether this differentiation justifies Expedia's customer acquisition spending against AI disruption remains the key investment debate.

Who Is This Stock Suitable For?

Perfect For

  • ✓Value investors seeking travel exposure at 13x forward P/E discount to peers
  • ✓Contrarian buyers betting on AI transformation and margin recovery
  • ✓Investors comfortable with management transition under CEO Ariane Gorin
  • ✓Those seeking travel recovery exposure with aggressive share buyback support

Less Suitable For

  • ✗Conservative investors uncomfortable with Google and AI disruption risk
  • ✗Dividend seekers (Expedia pays no dividend, prioritizing buybacks)
  • ✗Investors requiring proven execution before committing capital
  • ✗Growth investors seeking market share gains (Expedia trails Booking)

Investment Thesis

Expedia offers compelling value at 13x forward earnings—a 30%+ discount to Booking Holdings—with multiple self-help levers for margin expansion. CEO Ariane Gorin's AI-first strategy through Romie and One Key loyalty unification addresses structural marketing cost challenges by driving direct bookings. Share buybacks reducing float 5%+ annually provide EPS support even if revenue growth remains modest. The stock's 2024 selloff creates an attractive entry point for investors betting on travel demand resilience and execution improvements.

However, significant risks justify the valuation discount. Google's AI capabilities could fundamentally disrupt online travel discovery, rendering OTA intermediation less valuable. Booking Holdings' superior scale and profitability suggest Expedia fights from a disadvantaged position. New CEO Ariane Gorin inherits a company mid-transformation, requiring patience before her strategic impact becomes measurable. For investors with 2-3 year horizons who believe AI enhances rather than destroys OTA value propositions, Expedia represents asymmetric upside potential. Conservative investors should await evidence of market share stabilization and margin improvement before committing capital.

Conclusion

Expedia is a SPECULATIVE BUY for value-oriented investors with tolerance for execution and disruption risk. The 13x forward P/E prices in significant uncertainty, creating upside if CEO Ariane Gorin's AI and loyalty investments succeed. Buybacks provide downside support while travel demand remains resilient. Avoid if uncomfortable with competitive intensity or unwilling to hold through transformation execution. Consider position sizing reflecting higher volatility potential.
Bull Case
$320 (25% upside) - AI drives direct bookings to 65%+, margins expand to 22%+, Vrbo accelerates
Base Case
$275 (8% upside) - Steady 6-8% growth, margins flat at 18-20%, buybacks support EPS
Bear Case
$180 (30% downside) - Google disruption accelerates, recession impacts travel, marketing costs spike

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