Stock Price Trends

Expedia Group Inc. (EXPE)

Expedia Group, Inc. is an American online travel shopping company for consumer and small business travel. Its websites, which are primarily travel fare aggregators and travel metasearch engines, include Expedia.com, Vrbo (previously HomeAway), Hotels.com, Hotwire.com, Orbitz, Travelocity, trivago and CarRentals.com.

Stock Price Trends

Stock price trends estimated using linear regression.

Key facts

  • The primary trend is decreasing.
  • The decline rate of the primary trend is 23.27% per annum.
  • EXPE price at the close of July 26, 2024 was $125.87 and was higher than the top border of the primary price channel by $22.91 (22.26%). This indicates a possible reversal in the primary trend direction.
  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 19.22% per annum.
  • EXPE price at the close of July 26, 2024 was inside the secondary price channel.
  • The direction of the secondary trend is opposite to the direction of the primary trend. This indicates a possible reversal in the direction of the primary trend.

Linear Regression Model

Model equation:
Yi = α + β × Xi + εi

Top border of price channel:
Exp(Yi) = Exp(a + b × Xi + 2 × s)

Bottom border of price channel:
Exp(Yi) = Exp(a + b × Xi – 2 × s)

where:

i - observation number
Yi - natural logarithm of EXPE price
Xi - time index, 1 day interval
σ - standard deviation of εi
a - estimator of α
b - estimator of β
s - estimator of σ
Exp() - calculates the exponent of e


Primary Trend

Start date: February 4, 2021
End date: November 2, 2023

a = 5.6287

b = -0.0007

s = 0.1646

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0007) – 1
= -23.27%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.1646) – 1
= 93.15%

February 4, 2021 calculations

Top border of price channel:

Exp(Y384)
= Exp(a + b × X384 + 2 × s)
= Exp(a + b × 556 + 2 × s)
= Exp(5.6287 + -0.0007 × 556 + 2 × 0.1646)
= Exp(5.5544)
= $258.38

Bottom border of price channel:

Exp(Y384)
= Exp(a + b × X384 – 2 × s)
= Exp(a + b × 556 – 2 × s)
= Exp(5.6287 + -0.0007 × 556 – 2 × 0.1646)
= Exp(4.8961)
= $133.77

November 2, 2023 calculations

Top border of price channel:

Exp(Y1,075)
= Exp(a + b × X1,075 + 2 × s)
= Exp(a + b × 1,557 + 2 × s)
= Exp(5.6287 + -0.0007 × 1,557 + 2 × 0.1646)
= Exp(4.8281)
= $124.97

Bottom border of price channel:

Exp(Y1,075)
= Exp(a + b × X1,075 – 2 × s)
= Exp(a + b × 1,557 – 2 × s)
= Exp(5.6287 + -0.0007 × 1,557 – 2 × 0.1646)
= Exp(4.1697)
= $64.70

Description

  • The primary trend is decreasing.
  • The decline rate of the primary trend is 23.27% per annum.
  • EXPE price at the close of July 26, 2024 was $125.87 and was higher than the top border of the primary price channel by $22.91 (22.26%). This indicates a possible reversal in the primary trend direction.

Secondary Trend

Start date: June 13, 2022
End date: July 26, 2024

a = 4.0182

b = 0.0005

s = 0.1118

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0005) – 1
= 19.22%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.1118) – 1
= 56.42%

June 13, 2022 calculations

Top border of price channel:

Exp(Y725)
= Exp(a + b × X725 + 2 × s)
= Exp(a + b × 1,050 + 2 × s)
= Exp(4.0182 + 0.0005 × 1,050 + 2 × 0.1118)
= Exp(4.7476)
= $115.30

Bottom border of price channel:

Exp(Y725)
= Exp(a + b × X725 – 2 × s)
= Exp(a + b × 1,050 – 2 × s)
= Exp(4.0182 + 0.0005 × 1,050 – 2 × 0.1118)
= Exp(4.3002)
= $73.71

July 26, 2024 calculations

Top border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 + 2 × s)
= Exp(a + b × 1,824 + 2 × s)
= Exp(4.0182 + 0.0005 × 1,824 + 2 × 0.1118)
= Exp(5.1203)
= $167.39

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,824 – 2 × s)
= Exp(4.0182 + 0.0005 × 1,824 – 2 × 0.1118)
= Exp(4.6730)
= $107.01

Description

  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 19.22% per annum.
  • EXPE price at the close of July 26, 2024 was inside the secondary price channel.