Wednesday, November 11, 2020

Travel stock: Why Booking Holdings, TripAdvisor, and Trivago Stocks Skyrocketed Today

 Here is the article. 

Trip stock went up 40% on Nov. 9, 2020. It went up another 10% on Nov. 10, 2020. 

Pfizer and BioNTech currently expect to produce 50 million vaccine doses in 2020 before ramping up to 1.3 billion doses in 2021. Fogel warned last week that he expects it to take "years for travel to fully recover."

Many stocks across the travel industry, including airlines and cruise lines, have popped today on the hope of travel demand returning to normal levels, even though the vaccine candidate is still in clinical trials and not expected to be widely available until late 2021.

Booking Holdings, which operates leading travel-booking platforms like Priceline and KAYAK, among others, has been hammered by the COVID-19 crisis. The company reported third-quarter earnings results last week, and they showed that gross travel bookings declined by a wrenching 47%, while revenue fell by 48%. The dire figures were mostly expected, though, and the stock rose modestly following the release.

"When we think about the timing and shape of this recovery, we continue to believe that a key milestone will be a widely distributed vaccine or effective treatment, which will give people confidence that it is safe to travel," Booking CEO Glenn Fogel said last week. "While we are encouraged by the news of progress being made on this front, we understand that it will take time to produce and distribute any vaccine on a global basis to achieve effectiveness."

TripAdvisor also reported third-quarter earnings on the same day as Booking, and many of its metrics were just as gloomy. Total revenue was down 65% and the company swung to a net loss. TripAdvisor's revenue primarily consists of travel-related advertising and bookings.

No comments:

Post a Comment