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What: Shares of Orbitz Worldwide dropped as much 12%, before bouncing back into positive territory today, after the company named a new Chief Financial Officer.
So what: The online travel-services provider said Mike Randolfi, who is now a Senior Vice President at Delta, will become CFO effective March 11. CEO Barney Harford said Randolfi brings "deep travel experience" and a "proven track record of implementing strategic initiatives to generate strong profit growth."
Now what: It's rare to see a stock move this much simply due to a new CFO, a position often regarded as the No. 2 in a company, but Orbitz has been particularly volatile of late, up 40% since reporting earnings last week, but still down 20% from its 52-week high in August. The company has been struggling to turn a profit, and promised some layoffs and other types of cost-cutting in its report last week. Today's fluctuations seem more like a consequence of the uncertainty surrounding the stock rather than anything having to do with Randolfi.
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The article Why Orbitz Shares Fell and Then Recovered originally appeared on Fool.com.Fool contributor Jeremy Bowman has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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