Is EXPE a good stock to buy? We came across a bullish thesis on Expedia Group, Inc. on r/investing_discussion by Variant_Invest. In this article, we will summarize the bulls’ thesis on EXPE. Expedia Group, Inc.’s share was trading at $231.06 as of June 9th. EXPE’s trailing and forward P/E were 20.41 and 11.72 respectively according to Yahoo Finance.
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Expedia Group, Inc. operates as an online travel company in the United States and internationally. EXPE is increasingly being mischaracterized by the market as a consumer travel booking platform, when in reality a growing share of its value is being driven by its higher-margin B2B and advertising infrastructure businesses.
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Within its ecosystem, the B2B segment comprising Egencia enterprise travel, the white-label partner network, and its API-driven distribution layer has become the core growth engine, expanding faster than the consumer division while delivering structurally superior margins.
Expedia’s travel media network adds another underappreciated growth driver, allowing hotels and airlines to bid for high-intent travelers during the booking process, generating Google-like advertising margins that are not fully reflected in consensus estimates.
The consumer business is also stabilizing, with Vacation Rentals by Owners (VRBO) showing resilience and the One Key loyalty integration beginning to improve repeat booking behavior across the platform. Management’s restructuring efforts through 2023 and 2024 have streamlined costs and improved operational focus, setting the foundation for higher incremental margins as growth normalizes.
Despite this improving mix shift, Expedia continues to trade at a meaningful discount to Booking Holdings on comparable multiples, largely due to the market anchoring on its consumer-facing perception rather than its infrastructure earnings power. If the B2B and advertising segments continue compounding at a faster rate, Expedia Group has room for a significant rerating as the market closes the gap between perception and underlying earnings quality, creating a more balanced valuation framework versus peers. We believe this disconnect offers an asymmetric opportunity as fundamentals continue to improve across segments over the medium term period.
Previously, we covered a bullish thesis on Booking Holdings Inc. (BKNG) by Jimmy Investor in April 2025, which highlighted OTA dominance, global scale and strong margin profile. BKNG’s stock price has depreciated by approximately 15.26% (adjusted for stock split) since our coverage. Variant_Invest shares a similar view but emphasizes Expedia Group’s (EXPE) B2B and advertising-led re-rating potential versus Booking’s platform-led superiority.
Expedia Group, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 62 hedge fund portfolios held EXPE at the end of the first quarter which was 70 in the previous quarter. While we acknowledge the risk and potential of EXPE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than EXPE and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
