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Expedia Group Inc. (EXPE $231.66)
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Constellation Software Inc. (CSU $2,938.78)
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Lumine Group Inc. (LMN $25.72)
Q: You guys must be getting annoyed with all the questions on these companies, but I will press my luck with one more from a slightly different angle. I own them and I am trying to determine how low they go if earnings and commentary show any kind of slowdown. I am trying to better understand the risk/reward in continuing to hold versus just stepping aside until there is a clear reversal in trend. I am thinking that if there is no growth or a reduction in sales and earnings these could still fall much further, and I am hoping for your thoughts on how much.
Thanks
Thanks
5i Research Answer:
Keep in mind that so far, fundamentals haven't changed. If the companies report material weakness, or talk about AI-threats materially harming their businesses, then that would be the other shoe dropping, and another 20% decline (or more) would not be surprising in such a case. We do not expect this to happen, certainly not in the near term, but a discussion of an AI-threat would simply confirm investors' worries, and they might sell first and decide if that was right later. Recently companies such as EXPE did publicly acknowledge an AI threat in the quarterly comments.