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Expedia stock falls after Susquehanna downgrade

Emily Bary

Shares of Expedia Group Inc. are down 2.6% in premarket trading Monday after Susquehanna Financial Group analyst Shyam Patil downgraded the stock to neutral from positive. "Expedia is facing some challenges in one of its key growth drivers, Vrbo (formerly HomeAway), as the brand transition and SEO headwinds appear to be weighing on bookings growth," he wrote. "We believe it could take several quarters to resolve these issues." While Patil is still upbeat about the long-term opportunities in the online-travel business, he doesn't see a catalyst that could send Expedia shares higher. Patil lowered his target price to $141 from $170. The stock has gained 13% so far this year, as the S&P 500 has gained 18%.