Trip.com Group Limited (TCOM) shares plummeted 12.5% in pre-market trading on Tuesday, following the release of the company's fourth-quarter 2024 earnings results. Despite reporting a 23% year-over-year increase in Q4 revenue to 12.77 billion yuan, the online travel booking platform's earnings per share of 3.09 yuan fell short of analyst expectations of 4.08 yuan.
The disappointing earnings miss, coupled with a significant decline in Trip.com's full-year 2024 profit to 2.34 billion yuan from 17.07 billion yuan in the previous year, fueled concerns among investors about the company's growth prospects and profitability. While Trip.com's revenue growth remained robust at 20% for the full year, the sharp drop in annual profits weighed heavily on investor sentiment.
The pre-market selloff in TCOM shares highlights the challenges facing the online travel industry, as macroeconomic headwinds and intensifying competition put pressure on margins and profitability. As consumers become increasingly price-conscious and seek value-added services, Trip.com's ability to maintain its growth momentum and sustain profitability will be closely watched by investors.
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