Key Stats for Expedia Stock
- Price Change for Expedia stock: 17.6%
- $EXPE Share Price as of Nov. 7: $258
- 52-Week High: $264
- $EXPE Stock Price Target: $228
Now Live: Discover how much upside your favorite stocks could have using TIKR’s new Valuation Model (It’s free)>>>
What Happened?
Expedia (EXPE) stock surged over 17% on Friday after the online travel giant crushed third-quarter expectations and significantly raised its full-year outlook.
Revenue climbed 8.70% to $4.41 billion, topping Wall Street’s $4.26 billion estimate. Earnings jumped 23% to $7.57 per share, crushing the $6.95 consensus.
The standout metric was booked room nights, which grew 11% year-over-year. That’s the fastest pace of growth the company has seen in over three years.
U.S. room nights were up high single digits, the strongest domestic growth since early 2022. International markets performed even better, with Europe up by low double digits and Asia surging over 20%.
Management now expects full-year revenue growth of 6% to 7%, up from the previously projected range of 3% to 5%. Gross bookings guidance also increased to 7% growth from the prior 3% to 5% forecast.
CEO Ariane Gorin attributed the stronger outlook to an improved travel demand environment and solid execution across the company’s strategic priorities.
The business-to-business segment continued its momentum with 26% booking growth, marking the 17th consecutive quarter of double-digit expansion.
Advertising revenue grew 16%, posting another strong quarter. Operating margins expanded by over 2 percentage points, driven by improved marketing efficiency and cost discipline.
See analysts’ growth forecasts and price targets for Expedia stock (It’s free!) >>>
What the Market Is Telling Us About Expedia Stock
The strong reaction to Expedia stock suggests investors are excited about the near-term momentum and long-term strategic positioning.
The company is executing on all three of its strategic priorities: delivering more value to travelers, investing in high-growth opportunities, and driving operating efficiencies.
The margin expansion story is compelling, given that management achieved meaningful marketing leverage for the fourth consecutive quarter in the consumer business.
Marketing spend as a percentage of gross bookings dropped even as the company maintained strong growth. This demonstrates that the investments in platform technology and AI-powered personalization are paying off.
The recovery of Hotels.com and Vrbo is another positive signal for Expedia stock as both brands posted year-over-year growth in room nights and bookings after quarters of underperformance.
Vrbo is benefiting from new promotional tools, with over 20% of bookings coming from partner-funded deals launched just this spring. Hotels.com experienced its fastest growth in over two years after relaunching its “Save Your Way” loyalty program.
Expedia is utilizing AI to enhance property recommendations, personalize search results, improve customer service resolution, and optimize marketing spend.
Management noted that virtual agents now resolve over 50% of traveler queries, reducing service costs while maintaining quality.
Looking ahead, Expedia stock appears well-positioned despite some near-term uncertainties. Management cautioned that they are closely monitoring economic indicators and keeping an eye on headwinds, such as the government shutdown and airline disruptions.
The fourth quarter guidance of 6% to 8% growth factors in tougher comparisons from last year’s acceleration in November and December.
For 2026, management expects continued margin expansion, though at a more moderate pace than in 2025, as they invest in growth initiatives.
The B2B business represents a significant long-term opportunity, with management noting they operate in a $3 trillion travel industry with plenty of runway for expansion.
The travel platform remains committed to returning capital to shareholders, repurchasing $451 million of stock in the quarter. Over the past three years, Expedia has bought back 44 million shares, reducing the share count by 22% net of dilution.
Estimate a company’s fair value instantly (Free with TIKR) >>>
How Much Upside Does Expedia Stock Have From Here?
With TIKR’s new Valuation Model tool, you can estimate a stock’s potential share price in under a minute.
All it takes is three simple inputs:
- Revenue Growth
- Operating Margins
- Exit P/E Multiple
If you’re not sure what to enter, TIKR automatically fills in each input using analysts’ consensus estimates, giving you a quick, reliable starting point.
From there, TIKR calculates the potential share price and total returns under Bull, Base, and Bear scenarios so you can quickly see whether a stock looks undervalued or overvalued.
See a stock’s true value in under 60 seconds (Free with TIKR) >>>
Looking for New Opportunities?
- See what stocks billionaire investors are buying so you can follow the smart money.
- Analyze stocks in as little as 5 minutes with TIKR’s all-in-one, easy-to-use platform.
- The more rocks you overturn… the more opportunities you’ll uncover. Search 100K+ global stocks, global top investor holdings, and more with TIKR.
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!
