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.
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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