Why TripAdvisor Stock Fell Today
Shares of TripAdvisor (NASDAQ: TRIP) have fallen today, down by 5% as of 12:50 p.m. EDT, after several Wall Street analysts cut their price targets on the stock. The COVID-19 pandemic continues to hurt all travel-related companies.
Credit Suisse reiterated its neutral rating on TripAdvisor shares, and analyst Stephen Ju lowered his price target from $37 to $28. With global travel demand being obliterated by the novel coronavirus, advertisers are also pulling back on ad spending. Credit Suisse has cut its estimates accordingly. The bulk of TripAdvisor's revenue comes from click-based advertising on its branded sites. The analyst also points to ongoing uncertainty: Last month, TripAdvisor withdrew its 2020 outlook due to "increased impacts" of COVID-19.
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Source Fool.com
