Expedia Shares Slide 14% in Six Months as Revenue Growth Lags, Marketing Costs Bite

Expedia Group Inc. (EXPE) shares have tumbled 14% over the past six months to $226.69, trailing the S&P 500’s 11% advance, as sluggish revenue growth and high customer acquisition costs raise concern among investors. The online travel company’s annualized revenue rose just 7.9% over the past three years, below the consumer internet sector average. Average revenue per booking remained roughly flat, limiting commission growth even as room nights booked increased. Meanwhile, sales and marketing expenses consumed 61% of gross profit, reflecting intense competition and weak differentiation from peers. Following the decline, Expedia trades at 6.5 times forward enterprise value to EBITDA. While that valuation appears reasonable, the company’s tepid fundamentals and costly user acquisition present downside risk, leading some analysts to seek better opportunities elsewhere.