According to SearchEngineLand, Expedia recently lost 25% of its "search visibility" on the largest search engine on the Internet. The drop in visibility is likely due to an "unnatural link penalty." The penalty punishes Web sites that pay for links on article sites in an effort to get higher in Google search results. Expedia saw significant declines in keywords such as hotels, airline, tickets, car rentals, and vacation.
Other recent companies to be penalized for "unnatural links" (assuming Expedia did pay for links) include startup Rap Genius. Rap Genius saw big hits to its Web traffic when its linking scheme was uncovered.
TheStreet Ratings team rates EXPEDIA INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about its recommendation:
"We rate EXPEDIA INC (EXPE) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, attractive valuation levels, expanding profit margins, increase in stock price during the past year and growth in earnings per share. We feel these strengths outweigh the fact that the company has had sub par growth in net income."