EXPE eyes Q2 revenue growth despite U.S. softness, with B2B strength and cost cuts driving profit margin gains.
Get a deeper insight into the potential performance of Expedia (EXPE) for the quarter ended June 2025 by going beyond Wall Street's top-and-bottom-line estimates and examining the estimates for some of its key metrics.
Expedia (EXPE) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
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Expedia's now realized merchant model and tech stack consolidation from 20+ brands to 3 core platforms create operational leverage and higher take rates compared to pure-play agency competitors like Booking. Vrbo's temporary weakness during platform migration masks underlying supply growth and pent-up marketing spend, with conversion rates already recovering above pre-replatforming levels. My Variant View: One Key loyalty program's cross-platform redemption model reduces customer acquisition costs and creates stickier retention dynamics than competitor discount-based programs, driving sustainable margin expansion.
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I maintain a Strong Buy rating on Expedia Group, Inc. with a $400 YE26 price target, citing deep value and strong cash earnings growth. Expedia's shift toward the merchant model boosts margins and cash flow, despite higher business risk, while maintaining an asset-light structure. EXPE stock trades at a significant valuation discount to peers like Booking and Airbnb, despite comparable or superior growth prospects and robust free cash flow.
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Peter Kern, former chief executive of US travel giant Expedia, is set to acquire La Perla, the struggling Italian luxury lingerie brand. Italy's industry minister Adolfo Urso confirmed the deal on Tuesday, saying Kern's proposal was the strongest among competing bids.
Expedia Group enhanced its B2B segment, Private Label Solutions, by adding APIs that help its partners build travel packages. The new offerings will provide access to rental cars, bookable experiences, trip protection insurance and air travel, the company said in a Wednesday (May 14) press release.
Expedia shares are plummeting by 7% today after reporting Q1 earnings. Expedia's woes are part of a broader travel industry slowdown.