As Expedia rose, TripAdvisor (NASDAQ:TRIP) came along for the ride, given their similar business models. There wasn't specific news about the company, but shares were up as much as 6% and were up 4% as of this writing.
Vice Chairman Peter Kern was named CEO of Expedia Group, and Eric Hart was named CFO. This comes after a management shakeup that started last December and should give Expedia some management stability through the current crisis.
Expedia also announced $3.2 billion in new investment. Funds managed by Apollo Global Management and Silver Lake will provide $1.2 billion in equity investment in the form of perpetual preferred stock. Another $2 billion of new debt financing will also be sold to investors. The cash infusion is intended to get the company through the current travel downturn and help it emerge as a stronger company.
No one, including Expedia's management, knows how long the current downturn in travel will last, so companies are just trying to shore up their balance sheets to survive. A $3.2 billion infusion of cash should be enough to both survive as well as invest in new capabilities that will drive long-term growth. That's why investors are pushing the stock higher today.