Expedia Shares Drop Amid Weak Travel Demand

Published 1 hours agoEXPE

Expedia Shares Drop Amid Weak Travel Demand

Expedia's shares fell 9.2% following its first-quarter earnings report, which highlighted a shortfall in revenue expectations. The company reported $2.98 billion in revenue, missing analysts' predictions of $3.01 billion, due to weaker-than-expected travel demand in the U.S. Economic pressures like ongoing tariff disputes and high interest rates have curbed consumer spending, impacting the travel industry. This information was shared by Reuters.

Despite missing revenue forecasts, Expedia managed to post an adjusted profit of 40 cents per share, beating the predicted 32 cents. However, the travel sector as a whole is exhibiting signs of slow growth. Companies like Hilton have lowered their revenue forecasts, and Airbnb has noted increasingly cautious booking behavior among consumers. Analysts responded to these figures by lowering price targets for Expedia stocks, with a new median target of $201.33.

Expedia's challenges are reflected in its stock performance, with shares having declined 9.3% year-to-date, underperforming the S&P 500's 3.7% decline. As of the latest trade, Expedia's stock was priced at $154.57. The company continues to navigate a complex economic landscape, facing a slowdown in travel demand and broader market volatility.

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