TripAdvisor (TRIP) stock dived more than 9% in early trading in the stock market today, a day after the provider of travel reviews and metasearch services issued Q2 earnings far short of analyst views on higher sales and marketing spending and other costs. Cantor Fitzgerald lowered its rating on TripAdvisor stock to hold from buy, while Susquehanna International Group lowered its price target on TripAdvisor stock to 98 from 100. TripAdvisor was
TripAdvisor got tripped up by big marketing costs, posting Q2 EPS late Wednesday that fell far short of Wall Street expectations, sending the stock falling. The company’s revenue beat expectations, but TripAdvisor (TRIP) stock was down 11.5% in after-hours trading on the earnings miss. TripAdvisor’s Q2 selling and marketing costs, which include stepped up spending on TV ads in the U.S., France and Australia, surged 53% from the year-earlier
Analysts will be eyeing the impact of new TripAdvisor (TRIP) initiatives like “Instant Book” mobile bookings when the travel review and metasearch provider posts second-quarter earnings after the close Wednesday. Instant Book allows for hotel bookings through an online travel agency while staying within TripAdvisor’s mobile booking environment. The consensus estimate of 23 analysts polled by Thomson Reuters is for the provider of travel reviews