Expedia (EXPE) stock rallied more than 16% in Friday’s pre-market trading, as the online travel booking company reported better-than-expected second-quarter results. The company also raised its full-year outlook, citing solid performance in the first half of the year.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Expedia’s Q2 Results and Improved Guidance Impress Investors
Expedia’s Q2 revenue increased by 6% year-over-year to $3.79 billion, exceeding the Street’s estimate of $3.71 billion. Gross bookings increased by 5% to $30.4 billion and were primarily driven by growth outside of the U.S. Meanwhile, adjusted earnings per share (EPS) grew 21% to $4.24, crushing the consensus estimate of $3.97. Expedia attributed its Q2 results to continued strength across B2B and advertising as well as further progress on its key priorities. The company stated that it achieved these results even as the U.S. travel market was “muted” in the second quarter.
Management highlighted that consumers at the higher end of the market remained resilient, while those at the lower end had a more cautious approach to discretionary spending. That said, management noted that since the beginning of July, there has been an uptick in overall travel demand, particularly in the U.S.
Based on the better-than-anticipated performance in the first half of 2025 and recovery in U.S. travel demand, Expedia raised its full-year guidance. The company now expects both its 2025 gross bookings and revenue growth to be in the range of 3% to 5% compared to the previous guidance of 2% to 4%. Also, the company expects to achieve a 100 basis points expansion in its full-year EBITDA (earnings before interest, tax, depreciation, and amortization) margin compared to the previous guidance of a 75 to 100 basis points increase.
Analysts React to Expedia’s Results
Following the Q2 print, Piper Sandler analyst Tom Champion increased the price target for Expedia stock to $190 from $135 but maintained a Sell rating. Champion noted that the company delivered better-than-expected bookings and revenues, with strong execution across B2B and advertising. Despite these positives, the 4-star analyst remains bearish on EXPE stock, noting that with the B2C business growing by just low single digits, he struggles to see a compelling narrative. He also pointed out that comparisons will get increasingly more difficult as the year progresses.
Meanwhile, UBS analyst Stephen Ju raised the price target for Expedia stock to $209 from $182 but maintained a Hold rating. Ju highlighted that the company accelerated Room Nights growth to 7% year-over-year, which is in line with Airbnb’s (ABNB) Nights/Seats Booked growth in the same quarter. “There are different considerations as Expedia is continuing its recovery from several product-driven headwinds, so arguably it should be growing faster,” contended Ju.
Is EXPE Stock a Good Buy?
Wall Street is cautiously optimistic on Expedia stock, with a Moderate Buy consensus rating based on 15 Holds, eight Buys, and one Sell recommendation. The average EXPE stock price target of $185.71 indicates about 1% downside risk from current levels.
These ratings/price targets are expected to be revised, with more analysts reacting to the results.
