Why Trivago Stock Plummeted Today
Shares of Trivago (NASDAQ: TRVG) have plummeted today, down by 15% as of 1 p.m. EDT, after broader markets tanked. The novel coronavirus outbreak and a drop in oil prices are stoking fears of a global recession. Like many travel companies, Trivago faces increased risks from the COVID-19 respiratory illness as broad demand for transportation gets crushed.
As consumers curb unnecessary travel in response to the outbreak, Trivago's hotel-booking platform is starting to feel the negative impacts. On the conference call discussing fourth-quarter results last month, management conceded that it was unclear just how much of a hit the company would take.
Image source: Trivago.
Source Fool.com
