Sep. 22 at 8:12 PM
Expedia shares fell sharply in afternoon trading, extending recent underperformance after Morgan Stanley’s downgrade continued to weigh on investor sentiment. The stock opened at
$284.01 and dropped to an intraday low of
$263.18, reflecting sustained selling pressure.
Morgan Stanley analyst Brian Nowak downgraded Expedia to Underweight with a
$235 price target, citing stagnant monthly active-user growth of 0% in Q2 2026, versus 6% for Booking. com and 10% for Airbnb. The firm also said Expedia’s inventory, heavily weighted toward chain hotels and air travel, is among the more standardized offerings and increasingly exposed to disruption from AI-powered booking tools. Concerns about AI agents such as Meta’s Muse affecting the broader travel sector added to the pressure.
The weakness was not limited to Expedia, with other online travel and consumer marketplace stocks also declining.
$EXPE