EXPE Should I Buy
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Expedia Group Inc (EXPE) is not a strong buy at this moment for a beginner investor with a long-term strategy. While the technical indicators show some bullish momentum, the lack of recent positive news, insider selling, and mixed analyst ratings suggest a cautious approach. The financial performance also indicates declining net income and EPS, which could pose risks for long-term growth. It is better to hold off on investing until clearer positive catalysts emerge.
The technical indicators show a bullish trend with MACD positively expanding (3.023), RSI at a neutral 71.737, and moving averages in a bullish alignment (SMA_5 > SMA_20 > SMA_200). However, the stock is near resistance levels (R1: 255.434), which could limit short-term upside potential.
Jefferies upgraded the stock to Buy with a price target of $300, citing the company's potential as an AI beneficiary and its growth-adjusted discount. The company also reported a solid Q4 2025 with revenue growth of 11.40% YoY.
Insider selling has increased by 603.97% over the last month, indicating a lack of confidence from insiders. Analysts have lowered price targets due to concerns over AI risks, geopolitical uncertainties, and higher marketing spending. Net income and EPS have significantly declined YoY, raising concerns about profitability.
In Q4 2025, revenue increased by 11.40% YoY to $3.55 billion, but net income dropped by 31.44% YoY to $205 million, and EPS fell by 27.27% YoY to $1.6. Gross margin improved slightly to 84.04%, up 1.47% YoY, but the decline in profitability metrics raises concerns.
Analyst ratings are mixed. Jefferies upgraded the stock to Buy with a $300 price target, citing AI benefits and valuation discounts. However, other firms like Truist, Bernstein, and Mizuho have lowered price targets, citing uncertainties around AI risks, geopolitical tensions, and margin pressures. The consensus view appears cautious, with many analysts maintaining Neutral or Hold ratings.
