Based on the aggregated intelligence of 135,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, online travel agency Expedia (NASDAQ:EXPE) has received a distressing two-star ranking.

With that in mind, let's take a closer look at Expedia's business and see what CAPS investors are saying about the stock right now.

Expedia facts

Headquarters

Bellevue, Wash.

Market Cap

$5.43 billion

Industry

Internet Retail

Trailing-12-Month (TTM) Revenue

$2.88 billion

Management

President/CEO Dara Khosrowshahi (since 2005)

CFO Michael Adler (since 2006)

TTM Return on Equity

(70.1%)

Year-to-Date Return

129%

Competitors

priceline.com (NASDAQ:PCLN)

Orbitz Worldwide

CAPS Members Bearish on EXPE Also Bearish on

Research In Motion (NASDAQ:RIMM)

Bank of America (NYSE:BAC)

Capital One (NYSE:COF)

CAPS Members Bullish on EXPE Also Bullish on

Microsoft (NASDAQ:MSFT)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS.

Over on CAPS, fully 71 of the 326 members who have rated Expedia -- some 22% -- believe the stock will underperform the S&P 500 going forward. These bears include All-Star srk85 and BERNHAT.

In late April, srk85 nicely expedited the Expedia bear case: "Discretionary spending still problematic. Highly negative recent earnings will take years to recoup."

In a pitch from last week, BERNHAT expands on why Mr. Market is tripping out:

[Expedia] is the 800 pound gorilla when it comes to online travel. However, the consumer is overstreched and business travelling has fallen victim to cost saving efforts and alternatives (amongst others [Cisco's (NASDAQ:CSCO)] video conferencing gear). As I see it, the cake is hardly growing during the next 1 to 2 years and the smaller wolves [Priceline, Orbitz, Travelocity] are still hungry and aggressive (see booking and cancellation fee waving). ...

I think, the run up of nearly 150% since March was driven by sentiment rather than by fundamentals. And sentiment can change very fast.

What do you think about Expedia, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 135,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. priceline.com is a Motley Fool Stock Advisor pick. Microsoft is a choice of Inside Value. The Fool's disclosure policy always gets a perfect score.