What Happened?
A number of stocks fell in the afternoon session after investor fears over artificial intelligence disrupting the software industry sparked a broad sell-off. The anxiety stemmed from the rapid adoption of new 'agentic AI' tools, which some investors believed could dismantle traditional Software-as-a-Service (SaaS) business models. This 'AI Panic' led to indiscriminate selling across the sector. The market move reflected growing concerns about the downside of the AI boom for established software companies.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Online Marketplace company ACV Auctions (NYSE:ACVA) fell 2.6%. Is now the time to buy ACV Auctions? Access our full analysis report here, it’s free.
- Online Marketplace company eBay (NASDAQ:EBAY) fell 2.4%. Is now the time to buy eBay? Access our full analysis report here, it’s free.
- Online Retail company Chewy (NYSE:CHWY) fell 1.9%. Is now the time to buy Chewy? Access our full analysis report here, it’s free.
- Online Travel company Expedia (NASDAQ:EXPE) fell 4.9%. Is now the time to buy Expedia? Access our full analysis report here, it’s free.
- Consumer Subscription company Chegg (NYSE:CHGG) fell 4.4%. Is now the time to buy Chegg? Access our full analysis report here, it’s free.
Zooming In On Expedia (EXPE)
Expedia’s shares are somewhat volatile and have had 13 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 15 days ago when the stock gained 5.2% on the news that the company expanded its partnership with financial technology firm Affirm, making it the exclusive Buy Now, Pay Later (BNPL) provider for its brands in the US. The multi-year agreement covered Expedia's main brands, including Expedia, Hotels.com, and Vrbo, for lodging and travel packages. This move gave travelers more flexibility in how they paid for trips. The deal also included plans to make Affirm's payment options available to Canadian travelers on certain properties in the near future. By offering installment payments, Expedia aimed to make booking trips easier and more accessible for its customers.
Expedia is down 28.7% since the beginning of the year, and at $201.60 per share, it is trading 33.1% below its 52-week high of $301.31 from January 2026. Investors who bought $1,000 worth of Expedia’s shares 5 years ago would now be looking at an investment worth $1,309.
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