Expedia Stock Drops After Mixed Q4 Results, Announcement of CEO Change—Key Level to Watch

Key takeaways

  • Expedia shares fell despite better-than-expected quarterly results and sales, bookings were worse than expected and the company announced the appointment of a new CEO.
  • New CEO Ariane Gorin most recently served as president of the company's B2B arm, Expedia for Business.
  • Expedia stock price will likely find key support around $133 from a multi-month horizontal trendline and the 200-day moving average.

Expedia Group, Inc.

Source: TradingView.com.

Expedia (EXPE) reported quarterly results Thursday evening that beat Wall Street's expectations and bookings that fell short of forecasts, and also surprised investors by announcing the appointment of a new CEO. Shares of the travel giant fell 13% in extended trading hours.

The pioneering online travel company reported fourth-quarter adjusted earnings of $242 million, or $1.72 per share, compared to analysts' consensus estimate of $1.68 per share. Revenue of $2.89 billion in the period increased 10% from a year earlier and topped Street View's $2.88 billion. Gross bookings for the quarter rose 6% to $21.67 billion, slightly below the $22 billion analysts expected.

In a separate statement released Thursday evening, the company said CEO Peter Kern had resigned from his position and would be replaced by company internal Ariane Gorin, who will take the helm on May 13. Gorin, who has worked at Expedia for more than a decade. , most recently as president of the company's business-to-business (B2B) arm, Expedia for Business, will also serve on the board.

“We really wanted an internal candidate to succeed the CEO position, and after an extensive search, the board determined that Ariane was the best candidate given her exemplary leadership,” said Barry Diller, president of 'Expedia. The company said Kern will continue to serve as vice chairman and member of Expedia's board of directors, working closely with Gorin to facilitate a smooth transition.

Since returning above the 200-day moving average in early November, EXPE stock price saw a strong upward trend for several months before consolidating for most of January. An expected fall below the 50-day moving average risks shifting investor sentiment from the bullish camp to the bearish camp, potentially triggering a trend reversal. It is worth keeping a close eye on the $122 level, an area of ​​the chart likely to encounter support from a multi-month horizontal line and the 200-day moving average.

Shares of Expedia were down 13% at $138.68 in after-hours trading.

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