How to manipulate the price of Expedia shares

Expedia, a vacation booking website, should withstand the volatility of the travel industry

How he would manipulate the share price is explained by Terry Tanaka.

Recent turbulence in the travel industry has been both smooth and rough for travel company Expedia.

The cost of jet fuel has increased as a result of America's war on Iran, and rising gas prices have exacerbated the cost-of-living crisis, making many people question whether they can even afford to take a vacation.

However, the industry is still experiencing a post-pandemic boom on a broader scale, and the growing inclination (especially among younger people) to value experiences over material belongings is another positive factor.

Expedia has two primary businesses (Nasdaq: EXPE). A variety of consumer-facing websites that assist customers in booking hotel rooms and car rentals, such as Expedia . com, Hotels . com, VRBO . com, and CarRentals . com, account for about two-thirds of the group's earnings. But in recent years, a larger share of its income has come from providing the technical infrastructure needed for businesses like hotels and car-rental companies to handle their reservations.

AI won't endanger Expedia.

At the beginning of this year, Expedia's stock plummeted after tripling in three years. The ongoing Gulf War and worries that AI could handle a large portion of Expedia's work automatically were hurting markets. In the worst case, advancements in "agentic AI" would enable users to input a few commands into a chatbot, which would then automatically reserve a vacation at the most competitive rates, doing away with the need for comparison websites like the one operated by Expedia.

But such concerns appear exaggerated. Even if such software merged, few people would trust chatbots enough to let them book hotel rooms on their behalf, despite the fact that more and more people appear to be willing to rely on them to give advice about what to see. Big businesses are even less likely to entrust a chatbot with managing their employees' travel and hotel arrangements. A certain level of security is also provided by Expedia's exclusivity agreements with a number of hotel chains and airlines, including the straightforward carrier Allegiant Travel. Expedia is also investigating the use of AI to improve its own business processes.

Since 2022, the group's profits have more than quadrupled, demonstrating its strong track record. With a return on capital employed of over 30%, Expedia's strong operating margins enable it to increase dividends, repurchase £5 billion in shares, and grow sales at a double-digit rate. Expedia's shares are only 12 times 2027 earnings, making it seem relatively cheap despite its rapid growth.

Expedia's stock is up 33% from its early 2026 low and is now nearing its 52-week high, suggesting that investor confidence has returned. Additionally, it is above its moving averages of 50 and 200 days. As a result, at the current price of £268 at nine for every £1, I would go long on Expedia. Set the stop-loss at £168 so that your total loss is 900.