VCSA - Why Vacasa Stock Dropped 17% Last Month
2023-03-06 13:27:19 ET
Shares of vacation rental management company Vacasa (NASDAQ: VCSA) dropped 17.1% in February, according to data provided by S&P Global Market Intelligence . The stock had a late surge in January because of some dramatic changes to its business. But then the hype wore off and the stock slipped. However, it is important to note that Vacasa stock is still up and beating the market so far in 2023, even after February's drop.
On Jan. 24, a regulatory filing from Vacasa showed that it had laid off 1,300 workers -- a whopping 17% or so of its workforce. Rob Greyber joined the company in September as CEO and went to work trying to fix operational issues. As Greyber said in his letter to employees announcing the layoffs, "We need to reduce our costs and continue to focus on becoming a profitable company."
Regarding profits, Vacasa has some work to do. Through the first three quarters of 2022, the company's revenue was up 39% from the comparable period of 2021. However, its operating loss during this time quadrupled to $70 million.
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Why Vacasa Stock Dropped 17% Last Month