Expedia (EXPE) – Travel Demand Keeps Driving Growth
Expedia has been one of the clear winners as travel proves to be more resilient than many expected in 2025. Even with a cooling economy, flights, trains, and hotels remain packed, and Expedia has continued to capture that demand. The company booked 105 million room nights in Q2 2025, up 7% from the prior year, while its business-to-business segment notched 17% growth — its 16th consecutive quarter of double-digit gains.
The fundamentals back up that momentum. Expedia has been aggressively executing its $5 billion share repurchase program, buying back 3.8 million shares in Q2 alone, worth about $627 million. Altogether, nearly $1 billion has been repurchased in the first half of 2025. Management also raised full-year guidance, pointing to expanding EBITDA margins as operating leverage improves.
What makes the story even more compelling is how Expedia is diversifying its revenue base. Beyond consumer bookings, its B2B business and growing advertising arm are contributing higher-margin streams, helping to steadily push profitability higher. International revenue is also rising faster than U.S. sales, giving the company a broader runway for growth.
Technically, the stock recently broke out on strong earnings reported August 7 and is now trading around $216. While shares were briefly overbought, momentum has cooled and the $199–$205 range looks like an area of strong support. For long-term investors, the setup offers an appealing risk-reward profile: downside appears limited while the potential upside could extend into the high $200s or even low $300s over the next few years.
For those willing to wait for the right entry point, Expedia is a name to keep close on the screen. The combination of strong fundamentals, an aggressive buyback program, and secular tailwinds in global travel make this stock hard to ignore heading into year-end.
