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Why Expedia (EXPE) Stock Is Falling
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Why Expedia (EXPE) Stock Is Falling
Mar 11, 2025 12:11 PM

Expedia Group Inc ( EXPE ) shares are trading lower by 7.6% to $163.14 during Tuesday's session. The decline comes amid a broader sell-off in travel-related stocks following Delta Air Lines Inc's ( DAL ) reduced revenue and profit guidance.

Delta's warning about softening travel demand has raised concerns across the industry, pressuring Expedia's ( EXPE ) stock as well. Additionally, American Airlines Group Inc ( AAL ) cut its first-quarter adjusted EPS outlook.

What To Know: Expedia ( EXPE ), a leading online travel agency, is highly sensitive to fluctuations in travel demand. The company generates revenue primarily from booking commissions, hotel reservations, and vacation packages.

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A slowdown in consumer travel spending, as suggested by Delta and American Airlines’ revised outlooks, could weigh on Expedia's ( EXPE ) future earnings.

Expedia's ( EXPE ) business model relies heavily on both leisure and business travel. Delta's report of declining corporate and leisure travel suggests that fewer consumers may be booking flights and hotels, directly impacting Expedia's ( EXPE ) platform.

The company's dependence on strong seasonal travel trends also means any prolonged weakness in consumer sentiment could dampen revenue growth.

A broader downturn in discretionary spending could further pressure bookings, raising concerns about the company's ability to sustain growth in a weakening travel environment.

Read Also: Nasdaq 100 Trades Below Its 200-Day Moving Average: History Says You Should Buy The Dip Now

How To Buy EXPE Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Expedia Group’s case, it is in the Consumer Discretionary sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

According to data from Benzinga Pro, EXPE has a 52-week high of $207.73 and a 52-week low of $107.27.

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