TCOM Should I Buy
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Trip.com Group Ltd (TCOM) is not a strong buy at the moment for a beginner investor with a long-term strategy. While the company has shown strong financial growth in its latest quarter, the ongoing securities fraud class action lawsuit and regulatory scrutiny present significant risks. Additionally, the technical indicators and options data do not suggest a compelling entry point at this time.
The stock is showing bearish signals with moving averages (SMA_200 > SMA_20 > SMA_5) and a pre-market price decline of -0.76%. RSI is neutral at 24.49, and MACD is slightly positive but contracting. Key support levels are at 50.322 and 49.621, with resistance levels at 51.456 and 52.591.
Hedge funds are increasing their positions, with a 118.94% increase in buying over the last quarter. The company reported strong Q4 financials with revenue up 20.83% YoY and net income up 98.38% YoY.
The company is facing a securities fraud class action lawsuit and regulatory scrutiny, which could impact investor sentiment and stock performance. Analysts have lowered price targets across the board, citing margin pressures and industry challenges.
In Q4 2025, Trip.com reported revenue growth of 20.83% YoY, net income growth of 98.38% YoY, and EPS growth of 100.33% YoY. However, gross margin dropped slightly by -0.40% YoY.
Analysts have lowered price targets recently, with JPMorgan and Barclays adjusting their targets to $75 from $90 while maintaining Overweight ratings. Other firms like Benchmark and TD Cowen have also reduced targets but maintain Buy ratings, citing strong revenue growth but margin pressures.
