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 impressive financial growth in its latest quarter, the negative sentiment from ongoing legal investigations, antitrust concerns, and reduced price targets from analysts outweigh the positives. Additionally, technical indicators and options data do not suggest a compelling entry point for long-term investment.
The MACD is positive and expanding, indicating bullish momentum. However, the RSI is neutral at 58.694, and the moving averages show a bearish trend (SMA_200 > SMA_20 > SMA_5). The stock is trading near its resistance level of R1: 53.924, with the next resistance at R2: 55.055, suggesting limited short-term upside.
Hedge funds are increasing their positions, with a 118.94% increase in buying over the last quarter.
Strong financial performance in Q4 2025, with revenue up 20.83% YoY and net income up 98.38% YoY.
Ongoing legal investigations and antitrust concerns in China, which have negatively impacted investor confidence.
Multiple law firms preparing class action lawsuits, creating uncertainty.
Analysts have lowered price targets across the board, citing margin pressures and industry challenges.
In Q4 2025, Trip.com reported a revenue increase of 20.83% YoY to 15.398 billion, net income growth of 98.38% YoY to 4.281 billion, and EPS growth of 100.33% YoY to 6.11. However, gross margin slightly declined by 0.40% YoY to 78.96.
Analysts maintain a positive outlook with 'Buy' and 'Overweight' ratings, but all have lowered their price targets recently, citing margin challenges and industry-wide pressures. The new price targets range from $68 to $79, down from prior targets of $73 to $90.
