SELL

Positive - Price 20.48 on August 4
by Susquehanna Financial Group

Target: 25. With strong execution for a second quarter in a row…we're more confident regarding EXPE's outlook. Thus, we're increasing our Ebitda target multiple from 7 times to 10 times….We believe EXPE shares should trade at a price/earnings-to-growth, or PEG ratio, of 1 times long-term growth, as we view Expedia as a leader in the global online-travel industry, with exceptional free-cash-flow generation. Market cap: $6 billion.

According to the website Market Intelligence Center, technical indicators for Expedia appear bullish. They add that the stock has been showing support around 17.60 and resistance in the 18.96 range.

Parent: Microsoft

Travel website, and a part of MSFT's MSN Network that was actually valuable to shareholders.

Morgan Stanley said that its new analyst changed ratings on 8 Business Services stocks. ACM, IRM and URS were upgraded to Overweight. On the other hand, OWW and PLCN were cut to Equal-weight. EXPE, EXBD and ABCO were also downgraded to Underweight. Infrastructure plays and stock with strong cash flow offer the best upside potential.

Credit Suisse said it is upgrading Expedia (EXPE) to Outperform from Neutral based on positioning to exploit e-travel and media opportunities, strong free cash flow and modest valuation. Maintained $35 target price.

China Watch: CTrip.com
Brittany Umar and Patrick Schultz discuss why CTrip.com, a travel booking site, is so hot right now and how the Olympics play into this stock.

Click here to watch the video.

These losers have more than offset the winners, which include United States Steel (X), and Expedia (EXPE).

Barry Diller

Expedia (EXPE) was upgraded from Hold to Buy, Citigroup said. Stock has pulled back 18%, which discounts the company's online advertising

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