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Investing.com - Bank of America has reiterated its Buy rating on Expedia Group as the online travel agency shows signs of gaining modest global hotel room night share in 2025, according to a research note released Monday.
BofA analysts indicate that Expedia’s total nights increased by 6.5% in the first half of 2025, slightly trailing the broader online travel agency (OTA) group’s growth of 7.3%. The bank notes that Expedia’s business-to-business segment has been a key contributor to its market share gains.
The research highlights that while Expedia’s VRBO unit faces growth challenges due to its higher U.S. exposure, with expected growth of 3% compared to the sector’s 8%, this gap is narrowing compared to 2024’s estimated difference of 11 percentage points. Strong advertising revenue is helping offset potential revenue headwinds from merchandising efforts aimed at driving sales.
BofA maintains a Neutral rating on competitors Airbnb and Booking Holdings. The bank notes that while Airbnb’s alternative accommodation nights growth trails Booking, its total nights growth is modestly higher than peers.
Expedia is currently valued at more than a 50% EV/EBITDA discount compared to its OTA peers, according to the research note, which cites expectations for U.S. travel trends to improve relative to international markets in the second half of 2025 and signs of recovery in Hotels.com traffic as additional factors supporting the Buy rating.
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