Key Stats for EXPE Stock
- Today’s Price Change: -7%
- Current Share Price: $157
- 52-Week High: $207
- Analysts’ Price Target: $199
What Happened?
Expedia Group (EXPE) shares tumbled nearly 8% on Friday after the travel booking giant reported disappointing first-quarter results and cut its full-year outlook.
While revenue grew to $2.99 billion and total bookings reached $31.45 billion, both metrics fell short of analyst expectations.
Most concerning was the company’s reported net loss per share of $1.56, which was more than triple the $0.43 loss that analysts had forecasted, though adjusted earnings per share of $0.47 did exceed estimates by 31%.
CEO Ariane Gorin cited “weaker than expected demand in the U.S.” as consumer sentiment has deteriorated amid tariff-related economic uncertainty.
During the earnings call, Gorin noted that travel trends remained soft through April and revealed that European travelers appear to be choosing destinations like Latin America over the United States.
Expedia also reduced its full-year growth forecast for bookings and revenue to just 2-4%, down from the 4-6% range projected last quarter.
See Expedia’s full Q1 earnings transcript (It’s free) >>>
What the Market Is Telling Us
The sharp sell-off in EXPE stock indicates investors are increasingly concerned about broader U.S. travel industry headwinds.
Expedia’s disappointing results follow similar warnings from Airbnb, which recently issued softer-than-expected revenue guidance citing “broader economic uncertainties.”
The travel sector has historically been a strong contributor to the U.S. economy. Still, recent data from the U.S. Travel Association shows the country is now running an annual travel trade deficit of $50 billion, compared to a $3.5 billion surplus in 2022.
The market’s reaction to EXPE stock suggests growing skepticism about a quick recovery for travel companies, especially those heavily dependent on U.S. tourism.
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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!
