Expedia (EXPE) Stock Forecast & Price Target

Expedia Group is supported by a diversified travel platform that generated $119.6B of gross bookings last year, grew bookings and revenue 12% and 14% Y/Y in 2Q, and still has room to expand margins as Adj. EBITDA margin reached the mid-20% range and management now expects 150bps to 175bps of further expansion in full-year. Its outlook is strengthened by a fast-growing B2B segment, with 20%+ growth for a fourth consecutive quarter and $10.7B of bookings in 2Q, plus higher-margin advertising that rose 25% Y/Y in 2Q26 and should complement core transaction revenue. Investor sentiment also appears underappreciating Vrbo initiatives, including sponsored listings and higher host fees that could add to the '27 outlook, while the stock still screens as attractively valued at under 13x '27 GAAP PE.

Expedia Group is facing a slower growth profile as bookings guidance for 3Q implies just +5% to +7% Y/Y, down sharply from +12% in the prior quarter, while its most exposed businesses remain under pressure. Its core consumer brands Vrbo and Hotels.com have logged several periods of low-to-negative room night growth over the past two years, and with roughly 2/3 of revenue tied to the US consumer, the company is vulnerable if domestic demand or the macro backdrop weakens. Although B2B bookings reached $10.7B and grew over 20% for a fourth quarter in 2Q, that segment carries lower economics, and ongoing AI disintermediation risk, geopolitical disruption, and management transition uncertainty justify a cautious stance.