Expedia announced a change in leadership that will see Ariane Gorin, the president of Expedia for business, taking over from Peter Kern as chief executive officer on May 13. This announcement coincided with the company delivering strong fourth-quarter earnings, with revenue rising 10% to $2.887 billion and earnings of $1.72 a share, marking a 37% increase. However, the positive results did not prevent Expedia’s stock from plummeting by 15% in premarket trading on Friday after having achieved a 52-week high the day before.
Expedia’s stock fell drastically in early trading on Friday following the change in CEO and despite earnings that beat estimates. The stock had enjoyed a recent breakout after hitting a 52-week high on Thursday. The company has started to rebound, with demand for travel surging and the stock showing bullish signs in its price action. However, travel headwinds such as the impact of the omicron variant and war in Ukraine had contributed to challenges for Expedia throughout most of 2022. Additionally, the stock had undergone a significant decline in response to factors such as global travel restrictions and rising inflation. Overall, the change in leadership coupled with the positive earnings signals a potentially bright future for Expedia amid a recovering travel industry.
Expedia had utilized a strong rebound from the 10-week moving average and had previously seen four weeks of gains in heavy volume following its Q3 earnings report. Analysts’ price target hikes had also contributed to a favorable run for the stock in February. However, the company had navigated a challenging climate due to the impact of the omicron variant and geopolitical tensions, impacting travel. Despite these obstacles, however, the company’s financial performance and change in leadership underscore the potential for growth and recovery, which bodes well for Expedia’s future prospects.
