TCOM - Why Trip.com Stock Dropped Today
2023-11-21 15:39:02 ET
Shares of Trip.com (NASDAQ: TCOM) were down 10.5% as of 3 p.m. ET Tuesday as the Chinese travel website's strong quarterly results were overshadowed by a notable analyst downgrade.
On the former, Trip.com's quarterly revenue nearly doubled from the same year-ago period to 13.75 billion Chinese yuan (U.S. $1.9 billion), translating to adjusted earnings of 7.26 yuan ($1) per American depositary share (ADS). Most analysts were only expecting earnings of 4.93 yuan per share on revenue of 13.6 billion yuan.
Trip.com management noted that its domestic and international businesses each "continued to show robust recovery" during the quarter. Domestic hotel bookings climbed over 90% year over year and rose more than 70% compared to pre-COVID levels for the same period in 2019. Outbound hotel and air reservations also recovered to around 80% of pre-COVID levels, outpacing the broader industry's recovery rate of 50% as measured by international air passenger volume.
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Why Trip.com Stock Dropped Today