Expedia's Board Made a Big Mistake
Given the backdrop, investors can't be completely shocked that now-former Expedia (NASDAQ: EXPE) CEO Mark Okerstrom reportedly "resigned" last Wednesday following Tuesday's shareholder meeting. The online travel agent's stock plunged nearly 30% in early November following its third-quarter earnings miss, which followed lowered guidance regarding its second-quarter profits. Things haven't been easy of late.
There are some challenges, however, that will surface regardless of who's at the helm. And, there are some solutions that will take more than one quarter to implement regardless of who's directing them. Expedia's board of directors may have just prioritized short-term success over longer-term, sustainable growth.
"Ultimately, senior management and the board disagreed on strategy," explained Chairman Barry Diller in last Wednesday's official company statement. Diller also noted the board disagreed with Okerstrom's tepid growth outlook for the foreseeable future, "strongly believing the Company can accelerate growth in 2020." It was ultimately a jab at Expedia's rebuilding plan launched earlier this year, which Diller says was a distraction that led to the company's "lackluster" third-quarter results.
Source Fool.com
