Expedia (EXPE) Stock Forecast & Price Target

Expedia Group has projected a consolidated revenue growth of 4-6% alongside a margin expansion of 50-100 basis points for the upcoming quarter. Notably, improvements in the performance metrics of core brands, particularly Hotels.com and VRBO, could significantly contribute to elevated consolidated growth, with these brands accounting for over 20% of global bookings. Furthermore, recent data indicates a positive trend in global site traffic and US receipt sales, suggesting a robust potential for increased B2C bookings, which could support the company's financial outlook.

Expedia Group is facing a negative outlook primarily due to a reported decline of 1-2% in U.S. B2C bookings in the second quarter, raising concerns about the sustainability of consolidated growth as B2B growth is expected to taper off. Additionally, the company is struggling with pressure on EBITDA margins in its core hotel business, influenced by increasing sales and marketing expenses without signs of significant recovery. Lastly, Expedia's reliance on volatile revenue per room night trends and the impact of its focus on international hotel supply may further exacerbate these financial challenges.