Morningstar

Expedia CEO Pick a Good Choice

Mark Okerstrom (currently CFO) will become the company's next CEO, replacing Dara Khosrowshahi, who is leaving to head Uber.

Securities In This Article
Expedia Group Inc
(EXPE)

We are not surprised that

As we highlighted in a note earlier this week, Okerstrom is a good candidate to maintain the company’s network advantage (the source of its narrow moat), given he has been heavily involved with corporate strategy and acquisitions at Expedia since 2006 (nearly as long as Khosrowshahi had).

Further, we reiterate our comments from earlier this week that our time with Okerstrom has left us impressed with his communication skills and knowledge of the industry, and believe that Expedia’s culture and growth outlook is intact. It is also encouraging that Khosrowshahi will remain on Expedia’s board of directors, allowing the online travel agency the opportunity to tap into his vast knowledge of the industry.

As a result, we plan to maintain our Standard stewardship rating and fair value estimate, and we see shares as undervalued.

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About the Author

Dan Wasiolek

Senior Equity Analyst
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Dan Wasiolek is a senior equity analyst, AM Consumer, for Morningstar*. He covers gaming, lodging, and online travel. Names covered within the gaming industry are Wynn Resorts, Las Vegas Sands, MGM Resorts, Caesars Entertainment, Penn Entertainment, and DraftKings. In the hotel industry Dan covers Marriott, Hilton, InterContinental, Hyatt, Wyndham, Choice, and Accor. Other travel related names under his coverage are Booking Holdings, Expedia, Airbnb, Tripadvisor, Sabre, and Amadeus.

Before joining Morningstar in 2014, Wasiolek spent 16 years as an analyst and portfolio manager covering US mid- and large-cap strategies for Driehaus Capital Management. During the first half of his time at Driehaus, Dan’s responsibilities as an analyst included analyzing and recommending stocks across all sectors and industries for inclusive in the portfolios. Then in the second half of his tenure at Driehaus, Dan was responsible for stock selection and portfolio management of the US mid- and large-cap strategies, as well as co-managing in-house smaller-cap portfolios.

Wasiolek holds a bachelor’s degree in business administration from Illinois Wesleyan University and a master’s degree in business administration, with a concentration in finance, from the DePaul University Kellstadt School of Business.

* Morningstar Research Services LLC (“Morningstar”) is a wholly owned subsidiary of Morningstar, Inc

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