Should You Buy the Dip in Trip.com Stock?
Chinese travel-booking company Trip.com (TCOM) is a leading company in the travel-related services industry. However, its stock has plunged in price over the past month on increasing worries related to the rapid spread of the COVID-19 omicron variant. So, is it wise to bet on the stock at its current price level? Read on to learn our view.Headquartered in Shanghai. China, Trip.com Group (TCOM) is a leading global travel services provider that comprises Trip.com, Ctrip, Skyscanner, and Qunar. With $14.81 billion in market cap, TCOM is one of the largest companies in the travel services industry.
The company’s shares have declined 30.2% in price over the past year and 18.8% over the past month. Closing yesterday’s trading session at $22.88, the stock is currently trading 49.4% below its 52-week high of $45.19, which it hit on March 17, 2021.
As governments worldwide reinforce international travel restrictions, investors fear a slowdown in future bookings and delays in the industry’s already sluggish recovery. This, along with TCOM’s already poor profitability, might cause the stock to retreat further in the near term.
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