Expedia Faces Sharp Decline as Vrbo Underperforms, Triggers Guidance Cut

Expedia's stock plunges to a five-month low following a downward revision in annual revenue forecasts, primarily due to struggles in its Vrbo vacation rental segment.

• Expedia's first-quarter results reveal a significant shortfall in bookings, leading to a revised forecast of mid to high single-digit top-line growth.
• Vrbo's slow recovery post-replatforming and loss of market share to competitors like Airbnb and Booking Holdings are key factors in the revised guidance.
• Analysts downgrade Expedia's stock rating amid concerns over the sustainability of its growth trajectory and competitive disadvantages.
• Despite a global uptick in travel, Expedia's performance lags, particularly in the U.S market, affecting its overall financial outlook.
• CEO Peter Kern announces his departure, with Ariane Gorin set to take over, as the company navigates these challenging times.

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