Expedia (EXPE) Rallied in Q3. Here's Why

ClearBridge Investments, an investment management company, released its “ClearBridge Mid Cap Growth Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The strategy reported modest gains in the challenging environment, driven by monetary policy shifts, stabilizing earnings, and improving investor sentiment.  However, the strategy outperformed the Russell Midcap Growth Index, which returned 2.8%. The firm believes that the Strategy is well-positioned to benefit from its fundamental, bottom-up philosophy even though near-term volatility exists. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, ClearBridge Mid Cap Growth Strategy highlighted stocks such as Expedia Group, Inc. (NASDAQ:EXPE). Expedia Group, Inc. (NASDAQ:EXPE) is an online travel company with a market capitalization of $23.58 billion. The one-month return of Expedia Group, Inc. (NASDAQ:EXPE) was -2.42%, and its shares gained 44.06% of their value over the last 52 weeks. On October 9, 2025, Expedia Group, Inc. (NASDAQ:EXPE) stock closed at $216.81 per share, with a market capitalization of $26.823 billion.

ClearBridge Mid Cap Growth Strategy stated the following regarding Expedia Group, Inc. (NASDAQ:EXPE) in its third quarter 2025 investor letter:

"Our holdings in the consumer discretionary sector weighed on performance, and particularly our restaurant holdings. However, the sector did include a bright spot in Expedia Group, Inc. (NASDAQ:EXPE), which operates online travel platforms, whose stock rallied on strong B2B bookings and margin expansion driven by advertising monetization."

Expedia Group, Inc. (NASDAQ:EXPE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 56 hedge fund portfolios held Expedia Group, Inc. (NASDAQ:EXPE) at the end of the second quarter, up from 54 in the previous quarter. In the second quarter of 2025, Expedia Group, Inc. (NASDAQ:EXPE) reported revenue of $3.8 billion, up 6% year-over-year.  While we acknowledge the potential of Expedia Group, Inc. (NASDAQ:EXPE) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Expedia Group, Inc. (NASDAQ:EXPE) and shared the list of stocks Jim Cramer talked about. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None. This article is originally published at Insider Monkey.