Expedia Stock Rises Nearly 6% on Strong Earnings and Guidance
Expedia Group (EXPE) has seen its stock rise nearly 6% this week, driven by strong Q2 results and raised full-year guidance. The company reported adjusted earnings per share of $5.76 and revenue of $4.32 billion for the quarter—its fifth consecutive beat on both metrics. Management now expects annual revenue between $16.05 billion to $16.22 billion, with gross bookings projected at $129.5 billion to $130.8 billion. Growth was broad-based across Expedia’s business segments, including a 12% increase in gross bookings and a 23% jump in adjusted EBITDA to $1.11 billion. U.S. consumer demand showed the fastest growth in 15 quarters, while its B2B segment recorded double-digit gains for the 20th consecutive quarter. However, Europe remains challenging due to reduced air capacity and macroeconomic headwinds. Despite this positive performance, Morgan Stanley has issued an Underweight rating with a $235 price target—well below current levels—and prefers travel companies with more unique inventory or stronger direct traffic.
Tickers: $EXPE
Topics: financial_performance guidance_update stock_movement