Expedia (EXPE) Target Reduced by Citigroup Following Latest Results
Expedia Group, Inc. (NASDAQ:EXPE) is included among the 13 Most Promising Long-Term Stocks to Buy According to Hedge Funds.
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On February 23, Citigroup lowered its price recommendation on Expedia Group, Inc. (NASDAQ:EXPE) to $225 from $281. It reiterated a Neutral rating on the shares. The revision reflected a more measured outlook following the company’s latest results and guidance.
On February 12, Expedia said it expects a higher adjusted core profit margin in the first quarter. This improvement will be supported by one-time gains and continued demand from business customers. At the same time, management expressed caution about the rest of the year. The company said it remains “appropriately cautious due to ongoing macro uncertainty.” Consumer spending has been uneven, as higher prices and changes in U.S. trade policy continue to influence travel demand. Expedia’s finance chief, Scott Schenkel, said margin expansion in the first quarter will benefit from lower headcount, reduced marketing expenses, and lower cloud costs. He added that margin improvement may be more limited for the remainder of the year.
Expedia expects adjusted core profit margin to increase by 3 to 4 percentage points in the first quarter of 2026. This compares with a 1.05 percentage point increase in 2025. For the full year, the company expects margin growth of 1 to 1.25 percentage points, below the 2.4 percentage point increase recorded in 2025.
Despite the softer margin outlook, Expedia provided strong booking and revenue projections. The company expects full-year gross bookings between $127 billion and $129 billion. This is above analysts’ average estimate of $125.95 billion, based on LSEG data. Total revenue increased 11.4% to $3.54 billion, also exceeding estimates of $3.42 billion.
Expedia Group, Inc. (NASDAQ:EXPE) operates as an online travel company. Its business includes B2C, B2B, and trivago segments. The B2C segment offers travel and advertising services through several consumer-facing brands.
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