Expedia Stock Surged 40%, Here’s Why

+32.70%
Upside
200
Market
265
Trefis
EXPE: Expedia logo
EXPE
Expedia

Expedia (EXPE)’s stock soared 36%, fueled by a sharp earnings beat and a bold lift in FY25 outlook. Backed by analyst upgrades and a strategic acquisition, the company’s rising margins and buoyant B2B segment ignited investor confidence—sparking a surge investors can’t ignore.

Below is an analytical breakdown of stock movement into key contributing metrics.

  10162025 1142026 Change
Stock Price ($) 213.2 290.8 36.4%
Change Contribution By LTM LTM
Total Revenues ($ Mil) 14,018.0 14,370.0 2.5%
Net Income Margin (%) 7.9% 9.7% 21.7%
P/E Multiple 24.2 25.9 7.0%
Shares Outstanding (Mil) 126.5 123.7 2.2%
Cumulative Contribution 36.3%

So what is happening here? The stock surged 36%, driven by a 2.5% rise in revenue, a strong 22% boost in net margin, and a 7% jump in the P/E multiple. Let’s dive into the key events behind these gains.

Here Is Why Expedia Stock Moved

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  • Q3 Earnings Beat: EXPE beat Q3 2025 EPS and revenue estimates, driven by strong bookings and B2B growth.
  • Raised FY25 Guidance: Company raised full-year 2025 outlook for bookings, revenue, and EBITDA margins post-Q3 results.
  • Analyst Upgrades: Multiple analysts upgraded ratings and increased price targets from Dec 2025 to Jan 2026.
  • Tiqets Acquisition: Acquisition of Tiqets in Dec 2025 expands market reach into tours, activities & experiences.
  • Strong B2B Segment: B2B gross bookings grew 26% in Q3, marking 17 consecutive quarters of double-digit growth.

Our Current Assesment Of EXPE Stock

Opinion: We currently find EXPE stock fairly priced. Why so? Have a look at the full story. Read Buy or Sell EXPE Stock to see what drives our current opinion.

Risk: A solid way to gauge risk with Expedia is by checking how much it fell in past crises. During the Global Financial Crisis, it dropped about 83%. The 2018 correction saw a pullback near 39%, while the Covid pandemic wiped out roughly 63%. Even the inflation shock in 2022 hit it for around 61%. So, despite Expedia’s strengths, sharp market sell-offs still take a heavy toll. Downturns don’t discriminate much, even on well-positioned stocks.

EXPE stock may have seen strong gains recently, but investing in a single stock without detailed, thorough analysis can be risky. The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.