Expedia’s shares surged 13.5% to a 52-week high of $212.06 on Friday, capping a 59.75% annual gain, fueled by stronger-than-expected Q2 results. The travel giant reported earnings of $4.24 per share, surpassing forecasts of $3.96, while revenue hit $3.79 billion against estimates of $3.7 billion. Key growth drivers included a 17% jump in B2B bookings and a 19% rise in advertising revenue, underscoring its robust international presence. Adjusted EBITDA margins expanded by 190 basis points to 24%, reflecting improved profitability.
Analysts Rally Behind Upgraded Targets
Wall Street responded with bullish price-target hikes, including raises to $218 (DA Davidson) and $240 (BofA). Efficiency gains—from job cuts and AI adoption—slashed overhead costs to 16.8% of revenue. While U.S. consumer demand remained subdued, international leisure bookings grew 13%, and CEO Ariane Gorin noted a recent uptick in American travel sentiment. Expedia raised its full-year booking growth forecast to 3–5%, with margins expected to improve by another 100 basis points. The stock’s pre-market spike to $216 signals sustained investor confidence.
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