Why Tripadvisor Stock Crashed 11% Today

Core Viewpoint - Tripadvisor's stock has experienced a significant decline due to disappointing sales figures and concerns over future revenue growth, despite beating earnings expectations [1][2][3] Financial Performance - Tripadvisor reported earnings of $0.39 per share, surpassing the forecast of $0.37, but this figure was based on non-GAAP accounting, while GAAP earnings were only $0.17 per share, indicating no growth compared to the previous year [2] - Revenue for the quarter was $497 million, missing the expected $504.8 million, and reflecting only a 1% year-over-year growth [2] - Free cash flow fell dramatically by 59% year-over-year to $37 million, raising concerns about the company's financial health [2] Analyst Sentiment - Following the earnings report, five analysts lowered their price targets for Tripadvisor, with only one maintaining a buy rating, while two rated it neutral and two rated it a sell [3] - Tripadvisor's guidance suggests flat to declining revenue in the third quarter, with profit margins expected to decrease by approximately 350 to 450 basis points year-over-year [3] Valuation Concerns - Despite the earnings beat, Tripadvisor's stock is trading at nearly 100 times earnings, which raises questions about its valuation given the lack of growth [3]