Cantor Fitzgerald’s Top Internet Stocks: Best Stocks To Buy According To $13.2 Billion Firm

14. Expedia Group, Inc. (NASDAQ:EXPE)

Number of Hedge Fund Holders In Q2 2024: 56

Share Price Target Upside: -2%

Cantor’s Rating: Neutral

Cantor’s Share Price Target: $130

Expedia Group, Inc. (NASDAQ:EXPE) is a travel services provider that has been transforming its business since the coronavirus pandemic. This has seen the firm bring its hotel and rental vacation brands under a single roof, remove six dozen marketing programs from its business, cut 12% of the workforce, and consolidate seven loyalty programs under the One Key branding. Therefore, Expedia Group, Inc. (NASDAQ:EXPE)’s hypothesis depends on the success of this restructuring strategy, and if the firm keeps track and manages to streamline operations to capitalize on the resurgence in global travel and increased economic activity following interest rate cuts, then Expedia Group, Inc. (NASDAQ:EXPE) could see significant tailwinds. However, the firm’s margins remain a concern, with the trailing twelve month figure of 11.2% being 17 percentage points lower than larger rival Booking’s. Investors are wary as well, with Expedia Group, Inc. (NASDAQ:EXPE)’s forward P/E ratio of 8.47 being significantly lower than BKNG’s 18.90. This reflects disappointing results from the restructuring.

Artisan Partners mentioned Expedia Group, Inc. (NASDAQ:EXPE) in its Q2 2024 investor letter. Here is what the firm said:

“Expedia shares declined 18% during the quarter after reducing its full- year outlook. It lowered its revenue growth forecast to mid- to high- single digits for 2024 and said margins will stay flat. On the surface, a business growing in the high-single digits while maintaining profitability isn’t bad. The issue is the company just completed a major restructuring that was supposed to result in accelerated revenue growth and significant margin expansion. Neither is happening. The company continues to underperform the industry and its peers. Importantly, management will not share with us the important metrics and disclosures that might give us the ability to understand why. It continues to just tell us that improvement is coming. That is not enough for us, and we have lost confidence that the changes will have the intended impact on the company’s financial performance. As a result, we decided to exit the investment at a modest profit.”