Expedia Group's stock plummeted 10.08% during intraday 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 was 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. The company's CFO highlighted a "dynamic macro environment" in dialing down expectations.
This cautious outlook overshadowed the positive quarterly performance. Additionally, broader market concerns about artificial intelligence potentially disrupting service-based industries and several analysts cutting their price targets on the stock following the results contributed to the negative investor sentiment.