Expedia Stock Climbs 4% as Oil Slides on Iran Talk Hopes, Setting Up a Pivotal Third-Quarter Earnings Report

Shares of Expedia Group rose about 4% in early trading Monday as travel stocks rallied on falling oil prices, with the online travel company set to report third-quarter results this week.

Expedia stock rose 4.05% to $297.52 as of about 9:49 a.m. Eastern time.

The gain came as oil prices fell more than 4% on hopes for talks between the United States and Iran, easing concerns about fuel costs and travel disruptions. Online travel companies, hotel operators and airlines all moved higher.

Earnings Wednesday

Expedia will report its third-quarter results after the market closes Wednesday, Nov. 4.

Analysts expect earnings of about $8.83 per share, up about 17% from $7.57 a year earlier, on revenue of about $4.73 billion, according to MarketBeat.

Expedia has beaten earnings estimates in five of its last eight quarters.

Strong first half

Expedia has delivered solid results this year. In the second quarter, gross bookings rose 12% and revenue grew 14%, exceeding the company's guidance.

Growth has been led by Expedia's business-to-business segment, which provides travel booking services to other companies. B2B revenue grew 23% in the second quarter, while B2B gross bookings rose 21%.

Adjusted earnings rose 36% to $5.76 per share, beating estimates, and the company raised its full-year guidance.

Chief Executive Ariane Gorin said the company had strengthened its marketplace while leveraging AI "as a force multiplier" to innovate faster and operate more efficiently.

Returning cash

Expedia has been returning cash to shareholders. In May, the company announced a new $5 billion share buyback authorization. It also pays a quarterly dividend of 48 cents per share.

Valuation

Expedia's rally has pushed the stock above some analyst targets. Barchart reported last week that the average analyst price target was about $277, below Monday's trading price.

Among the 36 analysts covering the stock, most rate it a buy or hold, according to Barchart.

Legal risks

Investors are also watching legal challenges. Expedia faces a class action lawsuit alleging its hotel pricing practices raised rates for consumers. Separately, families have sued Vrbo and Expedia after a deadly vacation rental fire.

Middle East and oil

Travel stocks have been volatile this year because of the conflict in the Middle East, which disrupted oil shipments through the Strait of Hormuz and pushed up fuel prices. Brent crude traded around $115 a barrel late last week.

Higher fuel costs raise prices for airline tickets and can weigh on travel demand. Signs of progress toward peace that could lower oil prices have tended to lift travel shares.

Broader market

Monday's gains came as the overall stock market rebounded from a sell-off late last week driven by concerns about artificial intelligence spending.

What's next

Expedia's results Wednesday will be closely watched for signs of travel demand heading into the holiday season and 2027, as well as updates on the company's B2B growth and consumer brands including Expedia, Hotels.com and Vrbo.

Rival Booking Holdings is also scheduled to report results this week, giving investors a broader picture of the online travel industry.