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Why Trip.com Stock Is Soaring Today

What happened

Shares of Trip.com Group (NASDAQ: TCOM), a Chinese travel company, spiked today after the company reported its first-quarter results. Trip.com's bottom-line results matched up with analysts' consensus estimate, while its top line beat Wall Street's expectations.

The travel stock was up by 14.1% as of 12:29 p.m. ET.

So what

Trip.com reported a non-GAAP (adjusted) loss of $0.01 per share in the quarter, which was an improvement from a loss of $0.05 in the year-ago quarter and on par with analysts' consensus bottom-line estimate for the quarter.

Image source: Getty Images.

Investors were also happy to see that the company's revenue of $649 million -- essentially flat from the year-ago quarter -- easily outpaced Wall Street's average estimate of $575 million.

The company said in its press release that staycation travel was "a major contributor to the recovery of the Chinese domestic market" with hotel booking increasing 20% year over year. Management also highlighted that airline ticket bookings on its global platforms increased by 270% from the year-ago quarter.

"Though it was challenging for domestic travel due to the COVID-19 resurgence in China during the first quarter, our results demonstrated our resilience amid a confluence of challenges and uncertainties," Trip.com CEO Jane Sun said in a press release.

Now what

The company's strong results in the first quarter came at a time when China is easing some of its COVID-related travel restrictions.

The combination of the two is likely helping to fuel the company's share price surge today, which has resulted in Trip.com's stock gaining nearly 14% year to date.

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Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.


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