Expedia Group Inc. (EXPE) shares plummeted 9.42% in pre-market trading on Friday. The sharp decline followed the company's first-quarter earnings report and subsequent guidance, which highlighted significant headwinds from geopolitical tensions and travel advisories.
The online travel agency reported strong Q1 results but issued a second-quarter gross bookings forecast that fell short of Wall Street estimates. Management cited the ongoing conflict in the Middle East and a U.S. travel advisory for Mexico as key factors dampening demand. CEO Ariane Gorin noted that while the Middle East represents less than 2% of total bookings, the conflict led to elevated traveler cancellations across Europe and Asia in March.
Analysts pointed out that the combined impact from these events shaved approximately 200 basis points off the company's quarterly bookings and room-night growth. The company maintained its full-year revenue guidance, but the downbeat Q2 outlook and persistent macro uncertainty overshadowed the positive Q1 earnings beat, triggering the sell-off.