Core Viewpoint - Jefferies maintains a "Hold" rating for Expedia while raising its price target from $210 to $220, reflecting confidence in the company's ability to navigate industry challenges and capitalize on emerging travel trends [1][2]. Company Developments - Expedia's report "Unpack '26: The Trends in Travel" highlights significant changes in traveler behavior and introduces the Smart Travel Health Check to address overcrowding in tourism, aligning with Jefferies' rating decision [2]. - The company has enhanced its B2B offerings with an AI-powered trip planner and multiple APIs, aimed at boosting partner growth and improving customer experiences, which supports the current stock price [4]. Market Performance - The stock is currently priced at $214.65, with fluctuations between $212.61 and $216.05 during the day, and a market capitalization of approximately $25.48 billion [1][5]. - Over the past year, Expedia's stock has seen a high of $240.98 and a low of $130.01, indicating significant volatility and active investor interest with a trading volume of 759,499 shares on NASDAQ [5]. Emerging Trends - Innovative travel trends for 2026 include unique experiences such as sports events, book club retreats, salvaged hotels, and farm stays, which could attract new segments of travelers and impact Expedia's future growth [3].

Core Insights - Expedia Group's annual report, "Unpack '26," highlights significant shifts in traveler behavior and emerging travel trends for 2026, focusing on sustainable tourism and unique experiences [1][28]. Travel Trends - The report identifies seven key travel trends for 2026, including Set-Jetting, Hotel Hop, Farm Charm, Readaways, Fan Voyage, and Salvaged Stays, reflecting a growing interest in immersive and local experiences [5][32]. - Set-Jetting, inspired by movies and TV shows, is projected to become an $8 billion industry in the U.S., with 81% of Gen Z and Millennial travelers planning trips based on screen inspirations [22][26]. - Hotel Hop is gaining traction, with 54% of travelers opting to book multiple hotels within a single destination, particularly popular among younger travelers [15][32]. - Farm Charm is on the rise, with 84% of travelers expressing interest in farm stays, indicating a shift towards nature-based, slow travel experiences [17][32]. - Readaways, focusing on reading and relaxation, are appealing to 91% of travelers, with a notable increase in interest for literary-themed retreats [4][17]. Destinations of the Year - The 2026 Destinations of the Year list features locations with significant search increases, including Big Sky, Montana (+92%), Okinawa, Japan (+71%), and Sardinia, Italy (+63%), showcasing rising global traveler interest [8][32]. - Six of these destinations meet the criteria for Expedia's Smart Travel Health Check, which emphasizes sustainable tourism practices [6][25]. Hotels of the Year - The 2026 Hotels of the Year list highlights the trend of Salvaged Stays, where historical buildings are repurposed into unique accommodations, with properties like Hotel Seiryu Kyoto Kiyomizu showing a 194% increase in searches [12][13]. - The report indicates a growing demand for hotels that combine historical architecture with modern amenities, appealing to travelers seeking character and cultural relevance [12][32]. Fan Voyage - The Fan Voyage trend reveals a surge in interest for local sporting events, with 57% of travelers likely to attend regional sports while traveling, emphasizing the importance of community and culture [9][10].

DUBAI, United Arab Emirates--(BUSINESS WIRE)--UNPACK '26: EXPEDIA REVEALS HOW UAE TRAVELERS WILL EXPLORE THE WORLD IN 2026. ...

Core Insights - ClearBridge Investments' "ClearBridge Mid Cap Growth Strategy" reported modest gains in Q3 2025, outperforming the Russell Midcap Growth Index which returned 2.8% [1] - The strategy is positioned to benefit from a fundamental, bottom-up investment philosophy despite near-term volatility [1] Company Performance - Expedia Group, Inc. (NASDAQ:EXPE) has a market capitalization of $23.58 billion, with a one-month return of -2.42% and a 52-week gain of 44.06% [2] - As of October 9, 2025, Expedia's stock closed at $216.81 per share, increasing its market capitalization to $26.823 billion [2] Sector Analysis - The consumer discretionary sector, including restaurant holdings, negatively impacted performance; however, Expedia Group was a bright spot due to strong B2B bookings and margin expansion from advertising monetization [3] Hedge Fund Interest - Expedia Group, Inc. was held by 56 hedge fund portfolios at the end of Q2 2025, an increase from 54 in the previous quarter [4] - In Q2 2025, Expedia reported revenue of $3.8 billion, reflecting a 6% year-over-year increase [4]

Investment Rating - The industry investment rating is "Outperform" [1][60]. Core Insights - The report highlights a significant recovery in civil aviation passenger traffic, with major airports seeing a notable rebound in international passenger flow [4][5]. - There is a sustained enthusiasm for domestic travel during holidays, with inbound tourism continuing to thrive [4][15]. - The service sector shows a positive trend, with service consumption and production indices on the rise [30][31]. Summary by Sections Civil Aviation Recovery - Civil aviation passenger volume is recovering, with August 2025 domestic passenger volume reaching approximately 75.36 million, a 3.3% increase from 2024 and a 23.1% increase from 2019 [8]. - The average domestic economy class ticket price in August 2025 was 694.1 yuan, down 1.0% from 2024 and 8.5% from 2019 [8]. - International passenger volume in August 2025 was about 7.47 million, a 15.3% increase from 2024 and a 6.5% increase from 2019 [10]. Domestic Travel Enthusiasm - During the National Day and Mid-Autumn Festival holiday, domestic travel reached 888 million trips, an increase of 1.23 million from 2024, with total spending of 809 billion yuan, up 1.08 billion yuan from 2024 [18]. - The average spending per trip during the holiday was 911 yuan, surpassing 2019 levels but slightly lower than 2023 [20]. - The average travel radius for tourists reached 212.66 kilometers, a 14.8% increase year-on-year, indicating a growing willingness to travel further [23]. Service Sector Performance - In August 2025, restaurant revenue grew by 2.1%, and retail sales increased by 3.6%, with the service production index rising by 5.6% [31]. - The service sector PMI remained above the threshold, recording 50.1% in September, indicating ongoing demand recovery [33]. - The total revenue of the service industry from January to July 2025 saw a cumulative year-on-year increase of 7.4% [31]. Key Company Tracking - Ctrip's net profit for 2025 is projected to be 17.71 billion yuan, with a potential for valuation improvement compared to international OTA leaders [54]. - The report indicates a strong trend towards long-distance and cross-border travel, with significant growth in bookings for destinations beyond traditional hotspots [53]. - The average occupancy rate for star-rated hotels in Shanghai reached 71.90% in August 2025, recovering to 105.74% of 2019 levels [47].

Mark Mahaney, Evercore ISI head of internet research, said in a latest program on CNBC that Expedia (EXPE) is his top pick because the stock’s valuation is cheap. The analyst explains the reasons why he’s bullish on the stock: “Expedia is one of our top picks for the year. It’s kind of a contrarian call on our part, but part of it is it’s darn cheap. This thing still trades well under a market multiple, 13–14 times earnings. You have new management in place. If they are better executors and you can see th ...

Core Insights - Expedia Group is enhancing partner growth through the introduction of an AI-powered trip planner and multiple APIs [1] Group 1 - The new AI-powered trip planner aims to streamline the travel planning process for partners, potentially increasing efficiency and user satisfaction [1] - Multiple APIs are being introduced to facilitate better integration and functionality for partners, allowing for a more seamless experience [1] - This initiative is part of Expedia Group's broader strategy to leverage technology to drive growth and improve service offerings in the B2B sector [1]

Market Overview - Mid cap growth equities experienced modest gains in Q3, with the Russell Midcap Growth Index returning 2.8%, lagging behind the Russell Midcap Value Index at 6.2% and the Russell Midcap Index at 5.3% [3] - The U.S. Federal Reserve's rate cut in September contributed to easing monetary policy, benefiting rate-sensitive sectors and renewing interest in cyclical and innovation-led areas [3] Investor Sentiment - Investor sentiment improved due to the passage of the One Big Beautiful Bill and progress on trade agreements, reducing policy uncertainty and enabling companies to execute delayed strategic decisions [4] - Earnings estimates stabilized, particularly in technology and AI-related sectors, despite ongoing challenges in non-residential construction and discretionary segments [4] Portfolio Performance - The ClearBridge Mid Cap Growth Strategy outperformed its benchmark in Q3, driven by stock selection in IT, consumer staples, and healthcare sectors, while consumer discretionary and financials sectors slightly detracted from performance [5] Sector Contributions - In the IT sector, AppLovin (APP) and Monolithic Power Systems (MPWR) were standout performers, with AppLovin benefiting from strong earnings and optimism around its e-commerce business [6] - Consumer staples saw positive contributions from Performance Food Group (PFGC) and Casey's General Stores (CASY), both benefiting from strong operational performance [7] - The consumer discretionary sector faced challenges, particularly with Chipotle Mexican Grill (CMG) and Wingstop (WING) experiencing declines due to competitive pressures and softer spending trends [8] - Financials sector was a modest drag on performance, with Tradeweb Markets (TW) and Corpay facing challenges from macro volatility and company-specific issues [9] Portfolio Positioning - New positions were initiated in Roblox, benefiting from improved growth dynamics and advertising opportunities, and APi Group, which is well-positioned in safety and industrial services [10][11] - Exited position in Deckers Outdoor (DECK) due to increasing competitive pressures in the sneaker market [12] Outlook - Leadership within mid growth stocks remains selective, with a few companies rewarded for differentiated technology and strong pipelines, while others struggle with demand and competition [13] - Focus remains on identifying businesses with secular growth drivers across technology, healthcare, and industrials sectors [14] - Near-term market uncertainty is expected to persist, but the strategy is positioned to benefit from companies sustaining durable growth in earnings and cash flow [15] Portfolio Highlights - The ClearBridge Mid Cap Growth Strategy had positive contributions across seven of the 11 sectors, with IT and healthcare being the leading contributors [16] - Stock selection in IT, consumer staples, healthcare, and energy sectors contributed positively, while consumer discretionary and financials sectors weighed on performance [17] - Individual stock contributions included AppLovin, United Rentals (URI), and Performance Food, while detractors included Chipotle Mexican Grill and Tradeweb Markets [18]

Core Insights - Zillow and Expedia are among the first companies to integrate their applications within ChatGPT, marking a significant step in the evolution of conversational software [1] Company Developments - The integration of Zillow and Expedia into ChatGPT raises important questions regarding control and privacy, which are critical considerations for companies operating in the tech and travel sectors [1]

Core Viewpoint - The holiday travel season is expected to boost travel and entertainment spending by 1%, contrasting with a decline in other spending areas, presenting potential investment opportunities in travel stocks [1]. Group 1: Expedia Group - Expedia Group (EXPE) has shown a total return of 129.6% over the last three years, with a year-to-date increase of over 16% and more than 24% in the last three months [2][4]. - The stock is currently trading about 4% above its consensus price target, but bullish price targets of $240 and $250 from Mizuho and BTIG Research suggest further upside potential [3]. - With a forward P/E ratio of around 17x and expected earnings growth of 20% in the next 12 months, the stock is considered undervalued [4]. Group 2: Royal Caribbean - Royal Caribbean (RCL) has delivered a total return of over 765% in the past three years and is up 37% in 2025, driven by strong travel demand and a repaired balance sheet [5][6]. - Despite a recent 12% decline in shares due to profit-taking, analyst sentiment remains bullish with several price targets near or above $400 [6]. - The company has raised its dividend by 25% this year, enhancing its appeal to shareholders as it prepares for the holiday travel season [7]. Group 3: Southwest Airlines - Southwest Airlines (LUV) is projected to experience over 50% earnings growth in the next 12 months, making its forward P/E ratio of 20x noteworthy [9]. - The airline is expected to benefit from rising jet fuel costs and lower interest rates, which may stimulate demand for low-cost domestic travel [10]. - Although LUV stock is down about 3.5% in 2025, upcoming earnings reports and holiday travel demand could present an attractive entry point for investors [11].