Expedia Group's stock tumbled 5.85% in pre-market trading on Friday. The sharp decline came despite the online travel agency reporting better-than-expected earnings and revenue for the fourth quarter.
The primary driver for the sell-off appears to be the company's muted full-year profit margin guidance. While forecasting a strong expansion in the first quarter, Expedia expects its adjusted core profit margin growth to slow significantly for the remainder of 2026, citing ongoing macroeconomic uncertainty and uneven consumer spending. This cautious outlook overshadowed the positive quarterly performance and upbeat bookings projections.
Additionally, several analysts cut their price targets on the stock following the results, and broader market concerns about artificial intelligence potentially disrupting service-based industries may have contributed to the negative sentiment.