Bull case
Expedia Group is attractive because its core OTA scale is paired with improving monetization, as last year’s gross bookings reached $119.6B, net revenue take rate was 12.3%, and advertising grew +25% Y/Y in 2Q26 while remaining a high-margin complement. Its outlook is further strengthened by structurally distinct growth drivers: B2B bookings rose +22% Y/Y in 2Q and topped $10.7B, Vrbo initiatives like sponsored listings and higher host fees could add to '27 growth, and the full-year guide calls for gross bookings growth of 8% to 9% and Adj. EBITDA margin expansion of 150bps to 175bps. The business also appears undervalued relative to its growth, with shares trading at modest multiples versus a roughly 20% EPS growth profile, while technology unification, One Key, and AI-enabled booking tools should support more direct traffic, better efficiency, and margin leverage.