Hold Rating Maintained on Expedia as Near-Term Strength Offsets AI-Driven Long-Term Risks; $253 Price Target Reaffirmed

Analyst Richard Clarke of Bernstein maintained a Hold rating on Expedia, retaining the price target of $253.00.

Richard Clarke has given his Hold rating due to a combination of factors, balancing Expedia’s strong recent performance with rising structural risks. The company posted robust first-quarter results, with double‑digit gains in bookings and revenue and a meaningful EBITDA beat, and management’s second‑quarter outlook also points to continued healthy growth, suggesting short‑term earnings momentum remains solid.

However, the full‑year revenue and margin outlook was left unchanged, effectively signaling a softer second half and indicating management’s cautious stance despite recent strength. Clarke is particularly wary of the mounting costs and strategic uncertainty around AI, as Expedia faces both higher AI‑related expense and intensified competition from hotel chains and AI‑driven innovators, creating notable long‑term distribution and terminal‑value risk that, in his view, offsets the near‑term upside; accordingly, he maintains a Hold with an unchanged $253 target price.

Clarke covers the Consumer Cyclical sector, focusing on stocks such as Airbnb, Booking Holdings, and Expedia. According to TipRanks, Clarke has an average return of 3.1% and a 56.45% success rate on recommended stocks.

In another report released on May 8, Piper Sandler also assigned a Hold rating to the stock with a $245.00 price target.