November 15, 2024

Brighton Journal

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Expedia stock falls of late despite a 37% rise in profits amid CEO change| Daily investor business

Expedia stock falls of late despite a 37% rise in profits amid CEO change|  Daily investor business

Expedia (EXPE) announced a CEO change late Thursday while beating fourth-quarter earnings estimates. Expedia stock fell early Friday after hitting a 52-week high.

Ariane Goren, Expedia's president of business, will succeed Peter Kern as CEO effective May 13, the company said in a press release.




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Expedia's earnings growth accelerated

Estimates: Analysts expected Expedia earnings to reach $1.67 per share, an increase of 33% year-over-year. Revenue was expected to rise 9.7% to $2.873 billion, according to FactSet.

During the key holiday quarter, Wall Street expected bookings to grow 7.2% to $21.997 billion.

results: Earnings of $1.72 per share, an increase of 37% and an acceleration from the previous quarter's gain of 33.6%.

Revenue rose 10% to $2.887 billion. Total bookings grew 6% to $21.672 billion.

Expedia stock explodes after key support

Shares of the online travel and booking site fell 15% in pre-market. Expedia stock rose 3.3% to 159.47 in stock market trading Thursday. Online traf stock crossed a buy point at 155.84 on Thursday from a flat six-week base after trying to do so on Wednesday, according to MarketSmith charts.

The breakout came as part of this week's strong rebound from the 10-week moving average.

But buying right before earnings is very risky.

The 7% deep flat base formed after a big move from early November to late December.

Both Expedia and Booking.com (Baking) is on IBD Leaderboard Watchlist.

Booking stock rose 3.5% to a record high on Thursday. Stocks are on track for their sixth straight advance, rebounding from a 10-week streak.

Travel rebound after recession

As travel demand rebounds, Expedia is up 32% in the past year. They fell for most of 2022 amid travel headwinds, including the Omicron coronavirus variant, the war in Ukraine and rising inflation.

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However, the nature of Expedia stock's movement appears to have changed to the upside, almost entirely after its third-quarter earnings report on November 2. Since October, EXPE stock has recorded four weeks of gains in high volume and zero weeks of above-average turnover, according to Leaderboard Analysis.

In February so far, Expedia stock has risen 7% amid a series of increases in analyst price targets ahead of its earnings report, FactSet shows.

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