Why TripAdvisor Stock Fell 12% This Week
What happened
TripAdvisor (NASDAQ: TRIP) shareholders lost ground to the market this week. The travel-platform giant reported lackluster sales for the fiscal third quarter, while projecting a soft finish to the year. TripAdvisor also announced the retirement of its CEO, which adds uncertainty to its outlook.
So what
Sales doubled to $303 million in Q3, which was just
The good news is that this figure has improved significantly over the last two quarters, rising from 55% in Q1 to 70% in Q2 before reaching 76% this past quarter.
Now what
The company lowered expectations for the fourth quarter, which caught many investors by surprise. The growth rebound isn't expected to materially improve as compared to Q3, executives said in a shareholder letter. "The pandemic-related challenges continue to add near-term uncertainty to the speed of our recovery," management noted.
That uncertainty was amplified by news that CEO and co-founder Steve Kaufer is leaving the company in 2022. After over 20 years with TripAdvisor, Kaufer said he believes the time has come for him to step away from the business.
The search for a successor has already started, but investors might want to wait before buying into TripAdvisor shares following this week's slump. With
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