Sell: Expedia Group, Inc. (EXPE)
From Ian Wyatt’s Million Dollar Portfolio
Updated from Wall Street’s Best Investments 790, February 15, 2017
A major disruptor in its day, Expedia Group, Inc. (EXPE) helped reshape the travel industry.
Expedia’s strategy has more than paid off. Its free cash flow grew from $584 million in 2009 to $1.1 billion last year. That helped it weather the last recession relatively unscathed, even if its shares were mostly flat for the duration.
But, while free cash flow has nearly doubled over the past decade—thanks to its acquisitive nature—Expedia’s total debt has exploded, from $3.2 billion in 2009 to $13.9 last year.
Considering Expedia’s been in the portfolio for two years now with only a small gain to show for it, we don’t see the need to hold it as the travel industry faces a slowdown.
Sell Expedia.
Ian Wyatt, Ian Wyatt’s Million Dollar Portfolio, www.wyattresearch.com, April 5, 2019