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Where Did All the TripAdvisor Bulls Go After Strong Earnings?
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TripAdvisor Inc. (NASDAQ: TRIP) was supposed to be one of the greatest things for the travel industry in years. People love the reviews, and the company has even become better about getting its user-generated content and its own content out there.
It turns out that the caution in the stock market and more moderate growth rates seem to have played a role in taming some of the TripAdvisor bulls. This stock had already been lower since its 2014 peak, but now the post-earnings report has shares down right at 30% since the end of 2015.
What is interesting here is that Wall Street is guiding its price target expectations lower despite solid earnings this week. Have we entered the climate in which even the winners get punished? It seems so, as TripAdvisor was closer to $54.00 before earnings and went as high as $64.00 after earnings before settling in this past week.
TripAdvisor posted earnings of $0.45 per share, higher than the $0.33 per share consensus analyst estimate. The company also expects to see margin expansion in 2017 when revenue growth recovers and as it rolls out more instant bookings this year.
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