Why Is Tripadvisor Stock Trading Lower Premarket Wednesday?
Portfolio Pulse from Lekha Gupta
Tripadvisor, Inc. (NASDAQ:TRIP) shares are trading lower premarket after the company reported mixed second-quarter FY24 results. While adjusted earnings per share of $0.39 beat expectations, revenues of $497 million missed the consensus estimate. Brand Tripadvisor sales and adjusted EBITDA declined, but Viator revenue showed growth. The company repurchased 1.366 million shares and holds $1.2 billion in cash. TRIP shares are down 14.4% premarket. Investors can also gain exposure via Amplify Travel Tech ETF (NYSE:AWAY).
August 07, 2024 | 12:24 pm
News sentiment analysis
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NEGATIVE IMPACT
Amplify Travel Tech ETF (AWAY) may see some impact due to its exposure to Tripadvisor, which reported mixed Q2 FY24 results. TRIP shares are down 14.4% premarket.
Given that AWAY has exposure to Tripadvisor, the significant premarket drop in TRIP shares could negatively impact the ETF's performance in the short term.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
Tripadvisor's Q2 FY24 results showed mixed performance with EPS beating estimates but revenue missing expectations. Brand Tripadvisor sales and adjusted EBITDA declined, while Viator revenue grew. The stock is down 14.4% premarket.
The mixed earnings report, with revenue missing expectations and a decline in Brand Tripadvisor sales, has led to a significant premarket drop in TRIP shares. The positive aspects, such as EPS beat and Viator revenue growth, were not enough to offset the negative sentiment.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100