Trip.com Shares Fall as Earnings-Boosted Rally Cools

By Yifan Wang

Trip.com Group shares declined on Wednesday, as the Chinese online tourism agency pulled back from its recent rally.

The stock has lost as much as 4.8% and was last down by 4.2% at HK$284.60.

The reversal came after multiple Chinese state media outlets pointed to a Tuesday report by the company that showed weaker flight-ticket and hotel prices for the upcoming Dragon Boat Festival, a three-day holiday in China.

Losses also followed exchange filings by shareholder Baidu, which proposed the sale of more than 10 million shares of Trip.com this week.

Before Wednesday's decline, Trip.com had enjoyed a winning streak for four consecutive trading days, after it said late last week that it had swung to a profit during the first quarter, as travel demand recovered in China after the country scrapped pandemic movement curbs.

Analysts at UOB Kay Hian have called Trip.com's latest earnings as showing "better-than-expected growth at all levels."

The company "will be the key beneficiary of the release of pent-up demand for domestic travel as well as growth momentum in international tourism activities," the analysts said in a recent note.

Shares are up 13% so far in June.

Write to Yifan Wang at yifan.wang@wsj.com

(END) Dow Jones Newswires

June 14, 2023 00:16 ET (04:16 GMT)

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