When the price of oil comes down Expedia will go up, this investor says

Propellus Wealth Partners portfolio manager and senior wealth advisor Mike Vinokur says Expedia (Expedia Stock Quote, Chart, News, Analysts, Financials NASDAQ:EXPE) has the scale, relationships and brand strength to withstand potential AI disruption.

Speaking on BNN Bloomberg’s Market Call on June 8, Vinokur said Expedia’s relationships across hotels, airlines, car rentals and travel providers give the company a durable position.

“They have the moat,” Vinokur said. “They have relationships across all the hotels, all the airlines, car rentals and trip purveyors. Great free cash flow, lots of buybacks, wonderful brand, great technology.”

Vinokur said Expedia also fits with a broader discretionary spending theme if oil prices fall and consumers have more room to spend on travel.

“If the price of oil ever comes down, what’s going to go up? Discretionary. Travel, tourism, airlines, and this fits very neatly into that package,” he said.

He also pointed to Expedia’s current buyback program as a potential support for the stock.

“They have a huge buyback in place right now that they’ll hopefully be able to execute on,” Vinokur said.

The stock was up 28.50% over the previous 12 months and 38.57% over five years. Of the analysts covering the stock, 17 rated it “Buy,” 22 rated it “Hold” and none rated it “Sell,” with a consensus target of US$286.44.

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