For the Executive Decision segment of his "Mad Money" program Thursday, Jim Cramer sat down with Mark Okerstrom, CEO of Expedia Group Inc. (EXPE) , the house of travel brands that includes a lot more than just Expedia.
Okerstrom said Expedia has incredible brands including Hotels.com, Orbitz and Trivago. Consumers like choices, he said, and many customers have great relationships with their many different brands, but they all are one family that shares technology.
In addition to its own brands, Expedia's technology powers many other corporate travel destinations and services. Okerstrom noted that Expedia is the fourth-largest corporate travel operator. When asked about the outlook for travel, Okerstrom said people continue to explore the world and there are secular trends that are moving away them from spending on things and toward spending on experiences. There's also a growing middle class around the world that now has the means to travel for the first time.
Finally, when asked about their successful loyalty program at Hotels.com, Okerstrom said the program is very simple. Guests stay 10 nights and get one night free, and they can stay anywhere they like and are not restricted to any single chain.
Let's see if the charts look as positive as the story.
In this daily bar chart of EXPE, below, we can see that prices have been working higher from their late December/early January lows. Two corrections against the trend have taken several months. Prices look like they are now in a position to move up again, with EXPE above the 50-day and the 200-day moving averages.
The On-Balance-Volume (OBV) line is easier to read than the volume histogram and it has been moving up from May, signaling more aggressive buying. The Moving Average Convergence Divergence (MACD) oscillator just moved back above the zero line for an outright go long signal.
In this weekly bar chart of EXPE, below, we can see that prices are above the rising 40-week moving average line. Prices have been in an uptrend from early 2018 and the $140 area has capped the upside. The weekly OBV line has been moving sideways since early 2018, but a new uptrend may have begun in May. The MACD oscillator is above the zero line with the two averages of the indicator on top of each other. Price strength should turn the oscillator positive.
In this weekly Point and Figure chart of EXPE, below, we can see the uptrend and a longer-term price projection of $202. A trade at $145.04 is needed to refresh the uptrend.
Bottom line strategy: Approach EXPE from the long side and add on strength above $145. Risk a close below $125. The Point and Figure price target is $200.