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Expedia's on Sale

We don't see any cracks in the narrow-moat travel firm's competitive position and think the market is too pessimistic about its prospects.


Dan Wasiolek: Most travelers are aware of the online travel brand Expedia, but [investors] should be mindful that the company possesses a powerful network effect and currently trades at a substantial discount to our $175 fair value estimate, offering investors an attractive entry point.

Expedia's share price has underperformed recently, due to the market's ill-advised concern over increasing competition and investment. But in our view, Expedia's market position is unwavering with no signs of cracks, supported by solid trends in its international and vacation rental segments. This reinforces our stance that the firm's incremental spend in these divisions is justified and being done from a position of strength versus weakness. 

Dan Wasiolek does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.