Online travel company Trip Advisor (NASDAQ: TRIP) stock has fallen (-35%) this year. The travel sector was devastated by the pandemic as an epicenter industry. However, the reopening as unleashed much pent up demand with many airline carriers like American Airlines (NYSE: AAL) experiencing travel return back to pre-COVID levels. However, the popular travel site saw its shares peak at $64.95 on March 15, 202, and continue to slide towards its pandemic lows. Peers like Expedia (NASDAQ: EXPE) and Booking Holdings (NASDAQ: BKNG) are bottoming out, which may also be a sign for Trip Advisor shares to reverse course back up. Airbnb (NASDAQ: ABNB) stock has also attempted to put in a bottom. Travel and tourism is expected to surpass pre-pandemic levels by 6% in 2022 generating nearing $2 trillion. China loosening COVID quarantine restrictions helped to put a bottom in on travel stock. Unfortunately, the macroeconomic situation is making investors nervous with rising inflation, fuel costs, and interest rates. A recession can take the wind right out of the sales of the recovery as travelers rein in their discretionary spending. The Company installed a new CEO in July 2022 as the Company enters the business period of the travel season in the third quarter. Prudent investors seeking exposure in the online travel and entertainment segment can watch for opportunistic pullbacks in shares of Trip Advisor.
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Fiscal Q1 2022 Earnings Release
On May 4, 2022, Trip Advisor released its fiscal first-quarter 2022 results for the quarter ending March 2022. The Company reported an earnings-per-share (EPS) loss of (-$0.09) excluding non-recurring items versus consensus analyst estimates for a loss of (-$0.09), a (-$0.01) miss. Revenues grew 113% year-over-year (YoY) to $262 million beating analyst estimates for $249.7 million. Trip Advisor CEO Stephen Kaufer commented, “We are very pleased with our Q1 2022 results. After an Omicron-impacted January, our business picked up strongly in February and March, resulting in exceeding our own expectations for the quarter…We are optimistic about the remainder of 2022 and the increasing demand for travel, and are excited to help provide great advice and guidance to our community of travelers as they venture out again into the world.”
Conference Call Takeaways
CEO Kaufer briefly stated they were off to a strong start this year as they are reaping the benefits of the recovery in the travel and leisure industry. As the world opens up, Trip Advisor plays it role in helping traders. As of 2022, Matt Goldberg will take the reins as the new CEO. Goldberg has a broad spectrum of business experience from EVP of North America at Trade Desk, and CEO of Lonely Planet. CEO Kaufer praised Goldberg for his experience in business development, M&A, team building, and ability to reshape and transform as business to meet the needs of its customers. He also noted that the Company did file a confidential sup-IPO for its Viator brand subsidiary.
TRIP Opportunistic Pullback Levels
Using the rifle charts on the weekly and daily time frames provides a precision view of the playing field for TRIP stock. The weekly rifle chart peaked bottomed near the $16.83 Fibonacci (fib) level. The weekly downtrend has a falling 5-period moving average (MA) at $18.40 followed by the 15-period MA at $22.28 and falling 50-period MA at $27.59. The weekly 200-period MA is falling at $34.99. The weekly stochastic fell under the 20-band and stalled at the 10-band. The weekly lower Bollinger Bands (BBs) sit at $14.69. The weekly upper BBs sit at $31.52. The weekly market structure low (MSL) buy triggers on the breakout above $21.24. The daily rifle chart breakout has a rising 5-period MA at $18.74 followed by the 15-period MA at $18.27. The daily stochastic is rising towards the 70-band. The daily BBs are tightly compressed with the upper BBs at $20.06 and lower BBs at $16.72. The compressions precedes an expansion. Prudent investors can watch for opportunistic pullback levels at the $17.50, $16.83 fib, $15.38 fib, $13.36 fib, $12.38, $10.63, and the $9.80 fib level. Upside trajectories range from the $25.14 fib level up towards the $34.26 fib level.
