Expedia Higher On Shakeup But Look For It To Fizzle
Steve Miller | Dec 05, 2019 09:33AM ET
h3 Summary/h3
- Expedia (NASDAQ:EXPE) rose 5% on Wednesday after the company announced leadership changes along with a share buyback program.
- However, based on its market cycles, we believe the stock has hit near term resistance and will fade in the coming months.
Expedia (EXPE) announced the resignation of CEO Mark Okerstrom and CFO Alan Pickerill, which are effective immediately. Chairman Barry Diller and Vice Chairman Peter Kern will take their places in the near term. The company also announced a $20 million share buyback program.
Diller explained that, “Ultimately, senior management and the Board disagreed on a strategy that resulted in a material loss of focus on our operations, led to disappointing third quarter results, and left us with a lackluster near-term outlook.”
Our approach to stock analysis uses market cycles to project price action. Our analysis shows that EXPE is in the rising phase of its current cycle, however today it moved into a near term resistance zone. Our expectation is for a likely move below $95 in coming months.
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