Early Bird Prime for September 29, 2024

The online travel business is wrapping up a steady 2024, except for Expedia Group (Nasdaq: EXPE). While other companies are making investors happy, Expedia's stock is barely up 0.22% this year.

Why has Expedia’s stock struggled in 2024? Blame it on Vrbo; their vacation rental business has been more of a vacation nightmare. Analysts have been downgrading the stock faster than you can say "non-refundable booking." Add in some historical debt levels and a few questionable management decisions, and you’ve got a recipe for investor problems.

This week, TD Cowen called out Expedia by downgrading their outlook from Buy to Hold. The reasons? A gloomy company forecast and higher advertising spending that’s burning through cash faster than a tourist in a casino.

But before you start writing Expedia’s eulogy, let’s not forget that the company had a surprisingly strong financial performance over the summer.

Expedia also has one of the largest online travel networks, owning multiple travel brands, including Hotels.com.

The stock price hasn’t reached its potential yet. Should you invest in Expedia now in 2024, or not? Well, here’s the answer: