Movement Alert|Expedia Falls 5.18% in Regular Trading, Morgan Stanley Underweight Rating and Sector Weakness Weigh on Shares

Market Focus
Sep 22

On September 22, Expedia dropped 5.18% in regular trading to $266.19 per share, with turnover of $166 million, as selling pressure intensified following Morgan Stanley's bearish initiation of coverage and broad weakness across the online travel sector.

Morgan Stanley recently launched coverage of the online travel agency sector, assigning Expedia an Underweight rating with a $235 price target — significantly below the current trading level. The bank expressed a clear preference for platforms with unique lodging supply and strong direct traffic, naming Booking Holdings as its top pick. Morgan Stanley highlighted that AI is reshaping the travel search landscape, a shift in which Expedia is seen as competitively disadvantaged relative to peers.

Sector-wide headwinds amplified the decline. Booking Holdings fell 2.88%, Airbnb dropped 1.92%, and Viking Holdings slid 2.0%, reflecting broadly negative sentiment across online travel names. Additionally, the Federal Reserve's first rate hike in three years — a 25-basis-point increase to 3.75%–4.00% announced on September 17 — has added macro pressure to growth-oriented travel stocks.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

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