Expedia (EXPE) announced a CEO change late Thursday while beating earnings
estimates for the fourth quarter. The Seattle-based online travel company revealed that Peter Kern has resigned as Chief Executive Officer, after holding the role for four years. The news came as a surprise to investors, and as a result, Expedia stock experienced a sharp decline of 12% in after-hours trading. Ariane Gorin, who previously served as President for Expedia for Business, will take over as the new CEO on May 13, 2024. This transition marks a new era for Expedia Group.
Expedia’s CEO Change Raises Concerns among Investors
The sudden departure of Peter Kern as the CEO of Expedia has raised concerns among investors, leading to a significant decline in the company’s stock. Despite beating earnings estimates for the fourth quarter, the news of the leadership change overshadowed the positive financial results. Peter Kern, who also held executive positions at Microsoft between 2003 and 2013, will step down from his role, leaving Ariane Gorin to take the helm as the new CEO.
Ariane Gorin, who is currently the President for Expedia for Business, brings a wealth of experience and knowledge to the position. Her appointment as the new CEO signifies a shift in leadership for Expedia Group. Gorin’s tenure will begin on May 13, 2024, and she will be responsible for steering the online travel firm in a new direction.
“The sudden departure of Peter Kern as CEO raises concerns among investors, and the decline in stock price reflects investor nervousness about the leadership change,” stated an industry analyst.