Shares of Expedia Group (EXPE) tumbled 9.18% in pre-market trading on Friday following the release of disappointing first-quarter 2025 financial results. The online travel giant's stock decline was primarily driven by a revenue miss and growing concerns over weakening travel demand in the United States.

For the quarter ended March 31, Expedia reported revenue of $2.99 billion, falling short of analysts' expectations of $3.01 billion. This miss highlights potential headwinds in the U.S. travel market, which accounts for approximately two-thirds of Expedia's business. Despite the top-line disappointment, the company managed to beat earnings estimates, posting adjusted earnings per share of $0.40, compared to the $0.35 forecast by analysts.

Expedia's CEO Ariane Gorin warned that the weak demand trends observed in Q1 are continuing into the current quarter. This cautious outlook has raised concerns among investors about the overall health of the travel sector and potential shifts in consumer discretionary spending. The company reported total gross bookings of $31.45 billion for Q1, up 4% year-over-year, while booked room nights increased by 6% to 107.7 million. However, these modest gains were overshadowed by the revenue shortfall and cautious forward-looking statements.

In response to the disappointing results and outlook, several analysts have revised their stance on Expedia. Piper Sandler downgraded the stock to "underweight" from "neutral" and cut its price target to $135 from $174. BTIG also reduced its target price to $210 from $235. These downgrades reflect growing skepticism about Expedia's ability to navigate the challenging market conditions in the near term.

As the travel industry faces economic uncertainties, particularly in the U.S. market, Expedia's performance in the coming quarters will be closely watched as a barometer for the sector's resilience. The company's ability to adapt to changing consumer behavior and potentially shifting travel patterns will be crucial in regaining investor confidence and reversing the current stock decline.