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Investing.com - Cantor Fitzgerald has raised its price target on Expedia (NASDAQ:EXPE) to $200.00 from $170.00 while maintaining a Neutral rating on the stock. The company, currently trading at $189.44 with a market cap of $24.08 billion, has demonstrated strong momentum with a 43% return over the past year. According to InvestingPro analysis, Expedia is currently trading below its Fair Value.
The research firm expects Expedia’s second-quarter 2025 gross bookings to grow 4% year-over-year (3% excluding foreign exchange effects), compared to prior guidance of -2% to 4% growth. Room nights are projected to decelerate 2 percentage points to 4% year-over-year growth.
Cantor Fitzgerald models B2C revenues to accelerate modestly by 1% year-over-year due to stabilizing consumer demand trends, while B2B growth is expected at 13% year-over-year. For profitability, the firm forecasts EBITDA margin expansion of 90 basis points year-over-year to 23%, near the high end of prior guidance.
For the third quarter of 2025, Cantor projects total bookings growth of 5% year-over-year (3% excluding foreign exchange), slightly above consensus estimates of 3%. Room night growth is expected to accelerate 1 percentage point to 5% year-over-year, primarily driven by improved demand outlook for B2C.
The firm anticipates Expedia will maintain its full-year 2025 revenue growth guidance of 2-4% year-over-year, supported by a stable demand environment and favorable foreign exchange rates, while EBITDA margin guidance of 75-100 basis points year-over-year expansion is expected to remain intact.
In other recent news, Expedia reported a 1.5% decline in its B2C revenues for the first quarter, leading to a reduction in its full-year bookings guidance by 200 basis points. This comes as most Online Travel Agencies (OTAs) exceeded revenue forecasts for Q1, with all surpassing EBITDA expectations. Despite these challenges, Benchmark maintained its Buy rating on Expedia, setting a price target of $215.00, following positive travel demand trends highlighted by Delta Air Lines (NYSE:DAL). Additionally, Wells Fargo (NYSE:WFC) identified Expedia as one of its "best tactical longs" ahead of upcoming earnings reports. Former Expedia CEO Peter Kern is set to acquire the Italian luxury lingerie company La Perla, planning to invest approximately €30 million ($34.31 million) by 2027 to revitalize its production site. This acquisition was confirmed by Italy’s Industry Minister, who noted Kern’s competitive bid. These developments reflect a mix of strategic moves and market challenges for Expedia in recent times.
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