Morgan Stanley Analyst Downgrades Expedia Stock Amid User Growth Concerns
On September 16, Morgan Stanley analyst Brian Nowak downgraded Expedia (EXPE) to 'Underweight' with a $235 price target. This move comes as EXPE shares have already declined by about 15% from their recent high and closed lower that day. The downgrade is based on concerns over user retention and engagement, particularly in Q2 when monthly active users grew flat compared to significant gains at competitors like Booking Holdings (BKNG) (+6%) and Airbnb (ABNB) (+10%). Nowak also highlighted structural risks within Expedia's product mix, noting its heavy reliance on airfare and traditional hotels—categories with lower margins. The analyst warned that commoditized booking engines face disintermediation risk as AI-powered travel tools gain traction. Despite this bearish outlook, Barchart reports a 'Moderate Buy' consensus rating for EXPE stock with an average price target of $335.
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