COMPANY PROFILE

Expedia Group, Inc. (NASDAQ: EXPE) companies power travel for everyone, everywhere through our global platform. Driven by the core belief that travel is a force for good, we help people experience the world in new ways and build lasting connections. We provide industry-leading technology solutions to fuel partner growth and success, while facilitating memorable experiences for travelers. Our organization is made up of four pillars: Expedia Services, focused on the group’s platform and technical strategy; Expedia Marketplace, centered on product and technology offerings across the organization; Expedia Brands, housing all our consumer brands; and Expedia for Business, consisting of business-to-business solutions and relationships throughout the travel ecosystem. The Expedia Group family of brands includes: Expedia®, Hotels.com®, Expedia® Partner Solutions, Vrbo®, trivago®, Orbitz®, Travelocity®, Hotwire®, Wotif®, ebookers®, CheapTickets®, Expedia GroupTM Media Solutions, Expedia Local Expert®, CarRentals.comTM, and Expedia CruisesTM.

Style Factor Benefits

From a factor scoring perspective versus the other 199 brands in the brands index, here’s where Expedia scores well as of 12/30/21:

• 92% high free cash flow yield - the best value metric for predicting future returns when value is in favor

• 89% strong EPS revisions and beats last quarter

• 81% high short squeeze potential

• Similar to other travel stocks, EXPE scores poorly but has strong mean reversion potential, that’s why we own the stock.

2/13/2022 Earnings Update

Today’s Expedia is not the POS Expedia the company once was. Covid forced this company to oget their act together to survive. New management is a very big deal, these guys are 10x more impressive than old management who ran the business without a serious plan. When you compare Booking.com, great management, global in scope, non-US specialization, EXPE stock is operating more like Booking and they should begin to get a much more meaningful market cap and multiple. I like Booking.com too but I just think the valuation and new catalysts with management and vision offer a better upside potential. Omicron and other variants will have short-term effects on travel trends and bookings but overall, consumers are worn out and want to get out, each variant seems too have less impact on peoples bookings interest. EBITDA was a big beat, long-term key initiatives are beginning to take hold and bookings are accelerating here and abroad. The corporate bookings segment will be slower to return but leisure demand is very very strong and should get stronger as we hit spring. I don’t pay a ton of attention to sell side analyst estimates but I’ll bet they will be low given the demand we see out there. When you tighten your belt in difficult times and work on strong forward-thinking innovation initiatives during the down time, the important operating metrics can rip back quickly once the demand for your business returns. And travel has one heck of a pent up demand score. The stock has been a stellar performer in a difficult tape but I still think the stock needs to re-rate versus where Booking.com and Airbnb are. Solid hold for now.

1/3/2022 Update

There’s the old Expedia and the new, improved Expedia. This travel platform has been mis-managed, had multiple owners that eventually spun them off, and multiple CEO’s that were not effective. Normally, that description would send me and most managers running. Covid has been brutal to the travel sector in general but it did force companies, including Expedia, to really right-size their businesses. They had to cut their bloated workforce, make difficult marketing spend decisions, decide which businesses lines to cut, de-emphasize and double down on. This necessary but painful process is still ongoing but I have strong confidence that the business will come out of this much more efficient, leaner, and stronger at the same time as the travel industry becomes the stable, predictable thematic it has always been. Better financial metrics and a rebound in business trends is a wonderful potion for strong stock price appreciation. The stock has recovered nicely already but I still think it has 30% upside in 2022 as travel here and abroad gets less hectic and more consistent. The VRBO unit which imo should be spun-off as a stand alone business better able to compete with AirBnb, is likely as valuable as the entire market Capp of EXPE now. There’s real value inside this company now and I suspect people will start thinking of them more like a travel staple than a tactical trade. Times, they are a changing and for the better.