Why Tripadvisor Stock Fell 10% on Tuesday
Shares of travel-planning company Tripadvisor (NASDAQ: TRIP) closed Tuesday's trading 10.2% lower, having fallen as far as 11.1% earlier in the day. The company reported third-quarter results early in the morning, and investors were not impressed by the reported figures.
Tripadvisor's third-quarter sales doubled year over year to $303 million, with the caveat that the year-ago period saw very limited interest in travel due to the raging coronavirus pandemic. Adjusted earnings swung from a net loss of $0.17 per share to a profit of $0.16 per share, both on an adjusted basis. Your average Wall Street analyst was expecting earnings near $0.24 per share on revenue in the neighborhood of $308 million, and Tripadvisor fell short of both targets.
On top of the disappointing earnings report, co-founder and CEO Steve Kaufer chose this moment to announce his retirement after more than 20 years with Tripadvisor. Kaufer will stay in the captain's chair until a suitable successor has been found at some point in 2022.
Source Fool.com
