Live Expedia Group (Nasdaq: EXPE): Here’s Why the Stock Is Tanking Over 7%
Live Updates Live Coverage Updates appear automatically as they are published. Wall Street Response 12:33 pm by Gerelyn Terzo Wedbush Securities analysts responded to Expedia’s earnings print, saying that shares will maintain their balanced risk/reward profile. Wedbush reportedly reduced the price target on EXPE shares to $165 per share but kept a “neutral” rating on […] The post Live Expedia Group (Nasdaq: EXPE): Here’s Why the Stock Is Tanking Over 7% appeared first on 24/7 Wall St..
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Wall Street Response
Wedbush Securities analysts responded to Expedia’s earnings print, saying that shares will maintain their balanced risk/reward profile. Wedbush reportedly reduced the price target on EXPE shares to $165 per share but kept a “neutral” rating on the stock.
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Online travel-platform stock Expedia Group (Nasdaq: EXPE) is one of today’s losing stocks, shaving off over 7% of it value during the session. EXPE stock has fallen below the $160-per share level for a market cap of $19.9 billion. Trading volume is stronger than usual at 3.6 million shares compared with average volume of 2.3 million shares.
There are a few negative forces at play dragging EXPE stock lower today. EXPE is getting punished along with the broader tourism sector, owing to an economic slowdown that is likely to cause a travel snarl during what is typically a booming summer season. Perhaps chief among the negative catalysts today is an analyst downgrade out of Piper Sandler, which advises investors to steer clear of the stock for now on the heels of Expedia’s Q1 earnings results.
Summer Travel Slowdown
Expedia reported better than expected Q1 earnings per share, surpassing Wall Street estimates, while revenue fell short of consensus estimates on weakening U.S. travel demand. Making matters worse, Expedia reduced its 2025 gross booking guidance as it prepares to feel the pain from the economic slowdown. Expedia management warned of a slowdown in U.S. travel bookings, particularly from Canada.
Piper Sandler analysts hit Expedia stock with a downgrade, lowering shares from “neutral” to “underweight” with a price target of $135, reflecting downside risk of 13.4%. Piper Sandler analysts warned things could get worse before they get better, writing, “The commentary around U.S. inbound travel & the B2C business was discouraging and suggests a tough slog from here. It could also get incrementally worse.”
What Now?
Expedia’s issues are part of a wider downward trend in the travel industry, owing to the economic slowdown fueled in part by tariffs. As long as the economic outlook remains uncertain, Expedia’s stock could remain under pressure. Investors who hold the stock should do so with their eyes wide open because if Wall Street analysts are right, EXPE shares have further to fall before all is said and done.
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