Trip.com Group (TCOM) Shares Drop 9% Following Antitrust Investigation Notice
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2h ago
0mins
Source: seekingalpha
- Antitrust Investigation Launched: Trip.com Group has received a notice from China's State Administration for Market Regulation regarding an investigation under the Anti-Monopoly Law, resulting in a nearly 9% drop in premarket trading, reflecting market concerns over compliance risks.
- Company Response: Trip.com stated it will actively cooperate with the investigation, and its business operations remain normal, indicating the company's ability to maintain stability amid regulatory challenges.
- Market Reaction: The investigation has raised investor uncertainty about Trip.com's future business development, potentially impacting its market share in the context of increased international travel activity in Q3.
- Strategic Implications: The investigation could negatively affect Trip.com's brand image and market trust, forcing the company to find a new balance between compliance and market competition to maintain its leadership position in the travel industry.
Analyst Views on TCOM
Wall Street analysts forecast TCOM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TCOM is 83.67 USD with a low forecast of 76.00 USD and a high forecast of 90.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
12 Buy
0 Hold
0 Sell
Strong Buy
Current: 78.960
Low
76.00
Averages
83.67
High
90.00
Current: 78.960
Low
76.00
Averages
83.67
High
90.00
About TCOM
Trip.com Group Limited is a global travel service provider comprising Trip.com, Ctrip, Skyscanner and Qunar. Its one-stop travel platform connects its users and its ecosystem partners. It offers accommodation reservations, transportation ticketing, packaged tours, and corporate travel management services and other travel-related services to meet the various booking and traveling needs of both leisure and business travelers through its travel platform. It helps travelers around the world make informed and cost-effective bookings for travel products and services and enables partners to connect their offerings with users through the aggregation of comprehensive travel-related content and resources and an advanced transaction platform, including apps, websites and 24/7 customer service centers. Ctrip provides travel and related services in China. Qunar is an online travel agency in China. Trip.com is an online travel agency for global travelers. Skyscanner is a travel search company.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
