Expedia Group Inc.

Apple shares fell 1.6% today after Bank of America warned that third-party AI agents threaten to rewrite the economics of mobile commerce, striking at the core of Apple's ecosystem. The immediate catalyst is Meta's agentic AI Muse, launched on September 8, 2026, which cleared 2.5 million downloads in its first two weeks and surged to the top of the US iOS free-app chart, with OpenAI widely expected to announce its own consumer agent later today. In a new research note, Bank of America analyst Wamsi Mohan wrote that Apple can keep every handset sale and still lose discovery, referral, and transaction initiation, with routing economics shifting from the operating system to whoever owns the agent. Muse's early commerce integrations include Shopify's full catalogue and Shop Pay infrastructure, plus Expedia and PayPal, while Amazon notably blocked the agent outright. Apple's rebuilt Siri shipped with iOS 27 on September 14, 2026, using custom Google Gemini models for Apple Foundation Models, but Mohan said Siri AI still lacks persistent background tasks, broad third-party action coverage, and a dedicated agent payment rail, and that the bottleneck is not hardware since a modern iPhone comfortably exceeds Muse's benchmark requirements of 2 vCPUs, 8GB of RAM, and 100GB of storage. Bank of America maintained its Buy rating on Apple, citing its loyal installed base and user trust, but Mohan warned that Apple ships major software releases annually while agents improve daily.

Meta Platforms Inc. shares have surged 36% in September, putting the Facebook parent on pace for its best month since July 2013 and on the cusp of joining an elite group of companies worth at least $2 trillion. The rally follows the release of Meta's Muse personal AI assistant, which has risen quickly to the top of app charts and quieted concerns that heavy spending on AI won't pay off. The recovery began after Meta agreed late last month to pay as much as $18 billion to settle a social-media lawsuit, removing a major overhang; since Aug. 18, Meta is the third-best performer in the S&P 500 with a 43% gain, a dramatic reversal from less than six weeks ago when the stock was down 18% for the year. Meta has already announced a grocery-selling partnership with Instacart-owner Maplebear Inc. and one with online travel agency Expedia Inc., and at an event on Wednesday it unveiled products analysts praised, including a palm-sized gadget for using Muse and camera-free versions of its smart-glasses lineup. JPMorgan analyst Doug Anmuth raised his rating on the stock to overweight from neutral in a Sept. 10 note, citing meaningful upside potential as Meta is in the early stages of releasing frontier models and AI-driven products beyond advertising, though capital spending is expected to be nearly $140 billion this year, double the roughly $70 billion Meta spent in 2025, and is expected to swell to $197 billion next year and $215 billion in 2028.

Meta Platforms CEO Mark Zuckerberg said Wednesday that the company's personal AI agent, Muse, will remain free for most users, unveiling a slate of new retail and productivity partnerships at the company's Connect event. Zuckerberg described the model as novel, betting the agent will make users money by staying free for a huge number of tokens rather than charging upfront, with Meta eventually taking a small fee from transactions Muse completes on users' behalf. Muse launched on Sept. 8, with the basic version free and subscription tiers priced at $20 and $100 a month for heavier use. Meta AI chief Alexander Wang announced that Walmart, Best Buy, Gap, Sephora, Wayfair, Dick's Sporting Goods, Ulta Beauty and Fanatics are integrating with Muse to power new in-app shopping experiences, alongside productivity tools Box, GitHub, Granola and Notion, with Expedia joining for travel planning and Instacart for grocery orders. Wang also said Meta has received more than 1,500 applications from developers since opening its connector platform last week, and JPMorgan analysts said Muse could become the most widely used consumer AI app since OpenAI's ChatGPT.

Meta went live with an agent-commerce layer at Meta Connect 2026, expanding its Muse ecosystem so that the Muse Spark personal AI agent can shop and check out on behalf of users. Meta confirmed that PayPal global Muse payments will let customers shop and check out using their Muse personal AI agents across PayPal merchants worldwide, while Shopify and Stripe have integrated their Shop Pay and Link wallets to enable agent-native commerce infrastructure, with Muse able to search the Shopify catalog and execute checkout directly in-app. The connectors also include Expedia and Instacart, effectively turning the Muse agent into a digital wallet. The technical leap is the Muse computer-use capability, which runs in a Muse Secure VM, an isolated Linux virtual machine in the cloud, letting the agent interact with native macOS apps like Files, Mail and Calendar and drive a full browser. Meta also unveiled the Luna camera-free smart glasses with six microphones, open-ear speakers and a dedicated AI button, though Muse-on-glasses was only teased as coming soon and was not shipped at the keynote, with 2.5M US downloads as of September 20. Amazon has blocked Muse from its platform, a revealing exclusion that suggests the future of commerce may be a battle between open agent-accessible platforms and walled gardens, and the industry is building ahead of the GENIUS Act enforcement cliff looming on January 18, 2027.

Expedia Group CEO Ariane Gorin said travelers are still booking trips despite record-high gas prices, telling Yahoo Finance at the Goldman Sachs Communacopia & Tech Conference that Labor Day searches rose 35%, with vacation destinations like Las Vegas and places in Mexico leading demand. Gorin added that fall searches are shifting toward expensive cities such as Chicago, Boston and New York, and that more customers are using the company's budget and all-inclusive filters to find deals. According to AA, the national average gas price on Labor Day was $4.15 per gallon, the most expensive Labor Day ever at the gas pump. Expedia reported a 14% year-over-year revenue increase in the second quarter, with adjusted earnings per share up 36% from the prior year, and raised its full-year 2026 outlook, lifting revenue growth guidance to 9%-10% from 6% to 9% and increasing gross bookings projections to as high as $130.8 billion. Evercore ISI analyst Mark Mahaney called the valuation compelling at 14x P/E, citing a sustainable mid-teens EPS outlook supported by B2B segment growth above 20%, margin improvement and advertising revenue growth.

Google, a subsidiary of US-based Alphabet, on Monday changed how online search results are displayed in Europe to comply with demands from European Union antitrust regulators. The company says the change will degrade the quality of the user experience and increase costs for European businesses. Google told Reuters that the change represents the biggest drop in service quality in the 29-year history of the world's most-used internet search engine. The EU has presented the change as leveling the playing field among businesses displayed on search pages, but Google sees it as favoring price comparison sites such as Expedia and Booking.com, which are related to hotels, airlines, restaurants, and other sectors. These sites will appear more prominently in search results than rivals that only list links, phone numbers, and addresses on their websites. In July, Google was fined 460 million euros ($534 million) for violating the EU's Digital Markets Act (DMA) by favoring its own services in search results for shopping, hotels, transport, and sports. The European Commission set a 60-day grace period for compliance, warning that failure to comply could result in periodic fines of up to 5% of global daily turnover. Under Google's new search results, one specialized search engine will be highlighted at the top of the page, followed by two others with less detailed information. The ranking is determined by Google's algorithm. A Google spokesperson said: "These changes to comply with the DMA will degrade the European user experience. They favor online intermediaries at the expense of local businesses and remove convenient features that people rely on daily. Users outside the EU will not be affected by these changes." According to Google, previous changes to comply with the DMA have already reduced free direct booking traffic to European businesses by 30%, and the company expects similar effects from this change. When Google tested these changes with millions of European users, it received strong complaints because users had to re-enter search queries to find the information they wanted. Over nearly two decades of disputes with EU antitrust regulators, Google has accumulated total antitrust fines of 10.38 billion euros.

Expedia Group's implied fair value has been raised from US$293.71 to US$339.81, a roughly 16% increase, following updated 2026 guidance and new product launches. Several analysts lifted their price targets after Q2, including BTIG to US$400, Evercore ISI to US$430, Wedbush to US$417, and B. Riley to US$390, citing strong bookings, revenue, and EBITDA beats. However, Rosenblatt initiated with a Neutral rating and a US$360 target, flagging U.S. consumer concentration and AI-related risks. The fair value revision incorporates a lower revenue growth assumption of 6.81%, a higher profit margin of 15.25%, and a higher future P/E of 16.8x.

Today, Expedia Group announces 12 new partner products and functionalities across its flagship vacation rental brand, Vrbo®, and property management software, Escapia. The launch includes Vrbo Sponsored Listings, a pay-per-booked-night advertising solution now live globally, and new rates and promotions such as Limited Time Offers and Non-Refundable Rates to help partners optimize revenue. Escapia also modernizes its reservation grid, its most-used interface, with updates to distribution and payments. Several products are already live, with more rolling out through 2027, as the company aims to drive growth for partners and enhance traveler experiences.

Expedia Group reported second-quarter 2026 results with sales of US$4.32 billion and net income of US$878 million, while raising its full-year 2026 revenue guidance to US$16.05 billion to US$16.22 billion. The company also confirmed third-quarter revenue guidance of US$4.65 billion to US$4.75 billion, affirmed a US$0.48 quarterly dividend, and completed a US$4.33 billion share buyback program that reduced its share count by just over 20%. Management highlighted confidence in cash generation and business momentum, though the article notes that rising dependence on paid search and promotional spend could still pressure margins. The piece frames the results within an investment narrative built around AI, B2B partnerships, and loyalty growth, and notes that some optimistic analysts had already assumed revenue could reach about US$20.6 billion and earnings US$3.9 billion.

The next phase of the AI trade may reward companies that use AI to cut costs and lift profits rather than the chipmakers and infrastructure builders that led the first leg. Travel platforms Airbnb, Booking Holdings, and Expedia have surged nearly 40% at the median since May 19, while hotels are roughly flat, as AI begins to show up in measurable business results. Airbnb says nearly 45% of customer issues that begin with its AI assistant are resolved without a human, and customer support cost per booking has fallen roughly 16% from a year ago. Booking reports customer service cost per booking falling at a double-digit rate with AI investments already producing a positive return. Choice Hotels and Wyndham are also reporting hard AI gains, including a 360-basis-point lift in group-request conversion and a more than 500-basis-point boost in direct contribution at participating hotels, yet both stocks are down since May 19 and trade around 15 times forward earnings with analyst estimates down about 7% over the past three months.

Expedia reported second-quarter revenue of $4.32 billion, up 14% year on year and exceeding analyst estimates of $4.17 billion. Adjusted earnings per share came in at $5.76, beating the consensus of $5.25 by 9.7%, while adjusted EBITDA of $1.12 billion topped expectations of $1.04 billion. The company guided for third-quarter revenue of $4.70 billion at the midpoint, slightly above analyst forecasts. Room nights booked rose to 111.5 million from 105.5 million a year earlier, and operating margin expanded to 18.5% from 12.8%. CEO Ariane Gorin highlighted AI-powered personalization and marketplace expansion, including becoming the first online travel agency to distribute Allegiant flights, as key growth drivers.

Expedia Group Inc. reported second-quarter 2026 results that were stronger than market expectations, with adjusted earnings per share of 5.76 US dollars, 11.9 percent above the Bloomberg Consensus estimate. Total revenue came in at 4.32 billion US dollars, up 14 percent from the same period last year and 3.4 percent above analyst forecasts. The main growth driver was the Business-to-Business segment, where revenue rose 23 percent, pushing total gross bookings up 12 percent to 33.9 billion US dollars. Adjusted EBITDA increased 23 percent to 1.12 billion US dollars. On the back of the strong performance, the company raised its full-year 2026 revenue guidance to a range of 16.05 to 16.22 billion US dollars and lifted its EBITDA margin growth target. For Thai investors looking to invest in Expedia Group, they can do so through a Depositary Receipt referencing Expedia shares in the US market, namely EXPE06, which trades on the Stock Exchange of Thailand. The latest reference share price for EXPE US is 319.66 US dollars, while the DR EXPE06 price is 4.18 baht.

Allegiant Travel Company guided for full-year 2026 earnings per share of greater than $6 for the combined entity following a record second quarter. The combined company posted $943.5 million in revenue and a consolidated operating margin of 9.2%, with pretax income of $64.5 million and earnings per share of $2.19. CEO Gregory Anderson noted that both Allegiant and Sun Country achieved year-over-year TRASM improvement of more than 20%, and the company expects third-quarter unit revenue growth in line with the second quarter's 24.6% increase. The outlook assumes fuel at $3.75 per gallon for the rest of the year, while management flagged near-term headwinds from elevated pilot attrition at Sun Country and volatile fuel prices. The company also announced a new Expedia partnership and plans to debut a premium Allegiant First product on select aircraft in 2027.

Zacks Investment Research highlights five must-see earnings charts for the week, including Sandisk, SpaceX, Advanced Micro Devices, Expedia, and Berkshire Hathaway. Sandisk is expected to report full-year earnings growth of 2,111% for fiscal 2026, with shares up 502% year-to-date. SpaceX will release its first-ever earnings report, with a Zacks Consensus loss estimate of $0.26 per share. Advanced Micro Devices is projected to grow second-quarter earnings by 235% year-over-year, while Expedia is expected to see a 28.5% increase. Berkshire Hathaway, sitting on about $400 billion in cash, is forecast to post just a 1.4% earnings rise.

Expedia has beaten earnings estimates in its last two quarters by an average of 24.13%, and analysts see another beat as possible when it reports next on August 5, 2026. The online travel company posted earnings of $1.96 per share in its most recent quarter, topping the $1.41 consensus by 39.01%, after a 9.25% surprise the prior quarter. Expedia currently holds a Zacks Rank #2, or Buy, and a positive Earnings ESP of +7.86%, a combination that research shows produces a positive surprise nearly 70% of the time.

Expedia Group has signed a 12-month exclusive agreement to distribute Allegiant Travel Company flights across 566 routes in 124 U.S. cities through its U.S. brands. The deal comes as Expedia's stock has returned 40.96% over the past year and 9.98% over the last 30 days, though its year-to-date return stands at 6.36%. A widely followed narrative pegs Expedia's fair value at $345.94, implying the stock is 23.4% undervalued compared with its last close of $264.94.

Expedia is generating a free-cash-flow yield of 12.7%, more than double the 4.6% return on U.S. government bonds, even as the stock trades 13% below its 52-week high around $265.63 a share. The company’s three-year average free-cash-flow yield stands at 11.4%, supported by a durable model that converts 27% of revenue into free cash flow with net debt to equity of -0.03. Revenue grew 10% over the past twelve months, accelerating from a 7.9% three-year average, driven in part by a 22% increase in gross bookings in its B2B segment, which recently became the exclusive hotel partner for Uber. Management noted a challenging macro environment in March that led to elevated traveler cancellations, but said cancellation rates stabilized in early April and booking activity reaccelerated, with second-quarter gross bookings growth expected at 7% to 9%. The next earnings report is scheduled for August 5, 2026.

Expedia Group has become the first authorized online travel agent for Allegiant Travel Company under an exclusive 12-month agreement. The partnership integrates Allegiant's network of nonstop routes across 124 U.S. cities into Expedia's U.S. brands, allowing travelers to book Allegiant flights and compare options with other carriers on the Expedia platform. With the addition of Allegiant, Expedia now offers 100% coverage of U.S. commercial passenger airlines, establishing itself as one of the most comprehensive travel marketplaces. Expedia Group Vice President Golan Shakéd called the deal a significant milestone in building a complete and trusted travel marketplace. Shares of Expedia Group were higher on Tuesday, while Allegiant faced pressure amid rising oil futures.

Uber Chief Product Officer Sachin Kansal outlined the company’s expansion into travel, its evolving autonomous-vehicle strategy, and its selective approach to financial services in an interview with TechCrunch. Uber recently added hotel bookings through a partnership with Expedia, along with boat rentals in Europe and a “shop for me” concierge feature, framing travel as the third pillar after rides and delivery. On the autonomy front, Kansal confirmed that Uber and Waymo mutually ended a small-scale pilot in Phoenix while scaling to hundreds of cars in Austin and Atlanta, and he detailed a new AV Labs unit that will equip hundreds of sensor-laden vehicles to collect millions of miles of driving data for autonomy partners. He also said Uber is selling data-labeling services to generative-AI companies through its earner base, though he stressed that no in-ride conversations are recorded. Kansal noted that Uber Eats is now independently profitable, that the Uber One membership program has 51 million members and drives cross-usage between mobility and delivery, and that the company is not trying to be “everything for everyone,” preferring to partner with experts for services like buy-now-pay-later.

Expedia Group has signed a deal to acquire Ireland-based B2B car-rental platform CarTrawler, aiming to expand its mobility offerings and deepen technology support for travel partners. The acquisition is part of Expedia's broader pivot toward higher-margin B2B services, AI tooling, and mobility, as it seeks to offset softness in its core U.S. consumer business and competition from direct booking channels. The move complements Expedia's AI-powered B2B tools and Rapid API expansion, testing whether the company can convert its technology stack into stickier, higher-margin relationships with airlines, hotels, and travel brands. Some analysts project Expedia could reach $18.7 billion in revenue and $2.8 billion in earnings by 2029, requiring 7.3% annual revenue growth, while more bullish estimates see $20.6 billion in revenue and $3.9 billion in earnings. However, rising direct booking channels and supplier loyalty programs remain a threat to Expedia's take rates and long-term margins.

Expedia Group stock has returned 129.7% over three years, yet valuation checks suggest it remains undervalued. The company trades at a P/E of about 20.6x, below the Hospitality industry average of roughly 23.6x and a peer group average around 26.5x. Simply Wall St's fair P/E estimate of 29.5x indicates a meaningful discount, with the stock screening as undervalued in five of six valuation tests. The discount hinges on whether the market underestimates earnings power from a more integrated travel platform, though competitive and execution risks persist.

The 46 consumer internet stocks tracked reported a satisfactory first quarter, with revenues beating analysts' consensus estimates by 1.2% while next quarter's revenue guidance came in 0.6% below. Expedia posted revenues of $3.43 billion, up 14.7% year on year and exceeding expectations by 2.2%, with EBITDA also beating estimates and next-quarter revenue guidance slightly topping forecasts. Sea delivered the biggest beat, with revenues of $7.33 billion up 43.2% year on year and outperforming expectations by 10.1%, alongside strong EBITDA and user growth to 72.6 million. Shutterstock was the weakest, with revenues of $199.2 million down 17.9% year on year and missing estimates by 10.1%, accompanied by a significant EBITDA miss. ACV Auctions reported revenues of $204.2 million up 11.8% year on year, beating by 1.1%, but next-quarter EBITDA guidance missed significantly. Coupang's revenues of $8.50 billion rose 7.5% year on year, slightly missing estimates by 0.6%, though EBITDA beat solidly, and active buyers grew 2.1% to 23.9 million.

Uber Technologies stock has declined 20.18% over the past 52 weeks, but improving operating metrics such as monthly active platform customers and gross bookings suggest a buying opportunity. Congresswoman Nancy Pelosi recently purchased 200 call options on Uber with a $50 strike price expiring March 19, 2027. The company reported fiscal year 2025 revenue growth of 18% year-over-year to $52 billion, with adjusted EBITDA of $6.5 billion and free cash flow of $6.9 billion. Uber One membership reached 50 million as of March 2026, and the company is expanding into hotel booking through a partnership with Expedia Group and beauty delivery with Ulta Beauty. Analysts have a consensus Strong Buy rating on the stock with a mean price target of $106.28, implying 46.8% upside.