We recently published a list of the 11 Cheap NASDAQ Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where Expedia Group, Inc. (NASDAQ:EXPE) stands against other cheap NASDAQ stocks.
On April 10, Dan Ives, Head of Global Tech Research at Wedbush Securities, appeared on an interview at CNBC and expressed that the tech sector could be heading into a period of major volatility. Dan Ives addressed the current landscape for technology companies and pointed out that while a temporary pause in tariffs has provided some structure, the sector remains uncertain in general. He noted that even with this framework, large tech purchases are still being downsized or paused, which contributes to ongoing volatility, especially as companies approach earnings season. Many tech firms are either withholding guidance or providing only general outlooks. Ives described the situation as a storm whose full damage is only beginning to be assessed, with the industry still only a quarter of the way through the fallout. He explained the sharp pullback in major tech stocks by likening it to emerging from a storm and confronting the resulting damage.
Ives highlighted that the uncertainty in tech has been amplified by the escalating tariffs on China, which are now as high as 125%, and are a major concern for a lot of companies, as China remains central to the global tech supply chain. Ives also pointed out that the recent tariffs on China have forced companies to reconsider the costs and logistics of importing critical components. For example, a $100,000 part might now cost double due to tariffs, causing companies to halt or delay large investments. This has resulted in a notable pause in tech spending, which he expects to continue at least through the current quarter. He cautioned that the June quarter is likely to be very weak. He maintained that, despite the challenges, he has not downgraded tech stocks, drawing on lessons from the pandemic playbook, where periods of uncertainty eventually led to clear winners and losers. Ives also addressed concerns that tech companies, by pulling back on spending, might risk drawing negative attention from the administration, especially given recent meetings between tech CEOs and the president. He reiterated that China is the epicenter of the current turmoil and that big tech is caught in the middle of a high-stakes situation, with companies still trying to navigate the evolving landscape.
Ives predicted that Street estimates are likely to see earnings cuts of about 10% across internet and big tech companies, which reflects the broader pullback in spending and ongoing volatility.
Our Methodology
We first used the Finviz stock screener to compile a list of cheap NASDAQ stocks that had a forward P/E ratio under 15 as of April 21. We then selected the 11 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024. The hedge fund data was sourced from Insider Monkey’s database which tracks the moves of over 1000 elite money managers.
Note: All data was sourced on April 21.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
People interacting with a travel website, searching for the perfect destination.
Expedia Group, Inc. (NASDAQ:EXPE)
Forward P/E Ratio as of April 21: 10.28
Number of Hedge Fund Holders: 72
Expedia Group, Inc. (NASDAQ:EXPE) is an online travel company that operates through B2C, B2B, and trivago segments. It also provides brand advertising through online & offline channels. It has loyalty programs, mobile apps, and search engine marketing, as well as metasearch, social media, direct and personalized traveler communications on its websites, and through direct e-mail communication.
In Q4 2024, the company’s B2B segment had its bookings grow sequentially to reach 24%. For the full year, B2B bookings grew by 21%. Notably, in 2024, the B2B segment accounted for 27% of Expedia’s overall bookings, which was driven by strong account management, a compelling inventory of travel options, the introduction of new product features, and a record year in production from new partners.
The B2B business particularly benefits from international travel demand, especially in the APAC region. Expedia Group, Inc. (NASDAQ:EXPE) is strengthening this segment by sourcing unique supply specifically for B2B partners, testing new product offerings tailored to their needs, actively signing new deals to expand its partner network, and deepening existing commercial partnerships. The emergence of AI-native travel startups also presents potential new partnership opportunities for the B2B segment.
River Road Mid Cap Value Fund highlighted the company’s strong performance and stated the following regarding Expedia Group, Inc. (NASDAQ:EXPE) in its Q4 2024 investor letter:
“Another top contributor was Expedia Group, Inc. (NASDAQ:EXPE), the world’s second-largest online travel agency. Between EXPE and its #1 competitor, Booking Holdings Inc. (BKNG), the two companies dominate the global online travel agency market. EXPE has used its massive scale to invest in technology and improve the user experience, which has helped the company to maintain or grow market share and benefit from the secular growth in global travel. We appreciate that insiders own 4% of the company and that media legend Barry Diller serves as Chairman, typically operating with overcapitalized balance sheets, which provides financial flexibility.
Expedia’s strong stock performance was driven by several positive factors. The company exceeded revenue expectations with a 3.8% year-over-year growth excluding Trivago, while its B2B segment showed robust growth of 18.4%, demonstrating strong momentum in corporate partnerships. Operating income surged by 26% to $762MM, while net income soared by 61% to $684MM. Most notably, investor confidence was bolstered by strong capital returns through significant share repurchases totaling $1.6B year-to-date (9% of shares outstanding) and improved free cash flow of $2.3B, up 2.8% year-over-year, despite some margin pressure from increased marketing spending. We maintained the position.”
Overall, EXPE ranks 10th on our list of the cheap NASDAQ stocks to buy according to hedge funds. While we acknowledge the growth potential of EXPE, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than EXPE but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
