Wells Fargo cuts Expedia stock price target on bookings concerns

OTA share of hotel bookings remained flat at ~30% in 2025, with Booking Holdings and Expedia Group dominating. Booking.com now collects guest payments on 73% of sales, up from 25% in 2019, giving it more control over pricing. Expedia gained market share in Europe, while Booking.com remains dominant among independent hotels.

A lawsuit accuses Expedia Group of violating antitrust laws by enforcing contracts that prevent hotels from offering lower rates elsewhere, allegedly inflating prices by 15% to 30%. Expedia denies the claims, stating it provides competitive offerings. The suit seeks class-action status and covers Expedia's brands, including Expedia.com and Hotels.com. Expedia faces increased competition from direct hotel bookings, according to an SEC filing.

A class-action lawsuit filed against Expedia alleges the company artificially inflates hotel rates by prohibiting lower prices elsewhere, including hotels' own websites. The lawsuit claims Expedia charges 15-30% commissions and punishes hotels that offer lower prices. Expedia denies the allegations, stating it provides competitive offerings. The plaintiffs argue Expedia's monopoly power increases trip costs.

Goldman Sachs reduced its price target for Expedia Group from $370 to $310. The company's stock is currently trading at $258.86, reflecting a 0.47% decrease over the past day and an 8.63% decline over the past year. This adjustment may impact investor sentiment and trading decisions.

Airbnb (ABNB) fell 8% to $150 despite 17% revenue growth, as investors reacted to Meta's AI agent Muse, which could bypass travel intermediaries. Booking Holdings (BKNG) and Expedia (EXPE) also dropped. Airbnb's unique inventory and direct host-guest relationships may mitigate AI impact. The stock's consensus target is $184.35.

Shares of banks, insurers, and travel agencies fell as investors worry about Meta's AI agent, Muse, disrupting industries reliant on consumer inertia. Meta's stock rose 11% on Monday. Affected companies include JPMorgan, Morgan Stanley, Allstate, Charles Schwab, Expedia, and Booking Holdings. Goldman Sachs identifies telecoms, insurance, and utilities as sectors at risk.