Key Stats for Expedia Stock
- Pre-market price change for Expedia stock: -9%
- $EXPE Share Price as of May. 7: $253
- 52-Week High: $304
- $EXPE Stock Price Target: $284
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What Happened?
Expedia (EXPE) stock fell roughly 9% after the company posted strong Q1 results but issued softer-than-expected second-quarter revenue guidance — enough to spook investors already on edge about the macro environment.
The numbers themselves were solid.
- Revenue rose 15% to $3.43 billion, ahead of the $3.35 billion analysts had expected.
- Adjusted earnings came in at $1.96 per share, well above the $1.38 forecast.
- Gross bookings grew 13%, with the business-to-business segment again leading the way, up 22%.
- Consumer bookings rose 10% — the fastest pace in nearly eight years.
So what spooked investors? The Q2 outlook.
Expedia guided for $4.11 billion to $4.19 billion in second-quarter revenue. The midpoint of that range fell roughly in line with Wall Street’s $4.12 billion estimate, but gross bookings guidance of $32.5 billion to $33.1 billion came in softer than the $32.93 billion analysts had penciled in.
March turned out to be a rough month.
Travel advisories in Mexico and renewed conflict in the Middle East triggered a spike in cancellations, particularly in Europe and Asia.
CEO Ariane Gorin said those two headwinds alone shaved roughly two percentage points off the quarter’s total booking numbers.
Cancellations normalized in April, and booking activity picked back up, but the uncertainty fed into cautious guidance for Q2.
Rising airfares, driven in part by higher fuel costs tied to geopolitical tensions, are also creating some noise.
So far, Expedia hasn’t seen a dramatic shift in consumer behavior — and the company’s bundling options may actually help attract cost-conscious travelers. But the backdrop remains uncertain.
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What the Market Is Telling Us About EXPE Stock
Expedia’s business-facing segment continues to be the engine of the company.
B2B revenue jumped 25% in the quarter, and the company just announced an exclusive hotel partnership with Uber — adding to a growing list of big-name partners. The segment now powers hotel bookings for airlines, banks, and corporate travel platforms.
The consumer side is also improving. Vrbo had a strong quarter, with more than a third of bookings now coming through supplier-funded promotions.
Vacation rentals on the Expedia platform hit a $1 billion annualized bookings run rate for the first time. Loyalty membership grew, with the fastest growth coming from higher-tier members.
Last month, the company unexpectedly replaced its CFO. Scott Schenkel, who joined in early 2025, is stepping down and will be succeeded by former Snap executive Derek Anderson.
Analysts noted that investors had expected Schenkel to stay through the company’s three-year financial plan, which was laid out in March. His early exit caught Wall Street off guard and added a layer of instability to an otherwise improving story.
Expedia came into earnings with real momentum — margin expansion, consumer bookings growing at the fastest rate in years, and a B2B business that continues to outperform. But the Q2 guidance miss, combined with macro uncertainty and a CFO change, gave investors enough reason to sell.
The full-year outlook was reaffirmed, which is a positive. And Gorin was clear that the fundamentals remain intact.
Still, with geopolitical headwinds, rising airfares, and questions about AI’s long-term threat to online travel agencies, Expedia stock may stay under pressure until investors get more clarity on Q2 trends.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
