Stock Analysis

Trip.com Group (NasdaqGS:TCOM) Reports Impressive Q4 2024 Earnings Amid 8% Share Price Dip

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Trip.com Group (NasdaqGS:TCOM) reported impressive year-over-year growth in both revenue and net income for Q4 2024 and the full year, alongside announcing a $400 million share buyback initiative. Despite these strong financial metrics, the company's share price fell by 8% last quarter. This decline might be attributed to broader market volatility, as the tech-heavy Nasdaq Composite, where Trip.com trades, saw fluctuations amid investor concerns over U.S. economic health and new tariff announcements from the Trump White House. The reshuffling of global trade policies, combined with the mixed performance of tech stocks during this period, presented challenges that weighed on the stock's investor sentiment, overshadowing the positive earnings report and buyback plan. The market's drop of 3.6% in the same timeframe further underscores the external pressures acting against Trip.com’s stock performance.

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NasdaqGS:TCOM Earnings Per Share Growth as at Feb 2025

Over the past three years, Trip.com Group has delivered a total shareholder return of 110.3%. This substantial gain reflects the company's robust performance relative to industry and market peers. Over the last year, Trip.com outperformed both the US market and the hospitality industry, surpassing their returns of 16.7% and 15.7%, respectively. Significant earnings growth of 72.1% in the past year alone, bolstered by a continual rise in revenue, has likely reinforced investor confidence.

Key developments have supported this trajectory. Strong earnings results across 2024, with net income increasing to CNY 17.07 billion from CNY 9.92 billion the previous year, highlight resilient financial health. Additionally, the CNY 400 million share buyback announced in February 2025 might have enhanced perceived value. Strategic alliances, such as the partnership with Zhoushan Municipal Development and the opening of an Asia Live Streaming Centre, underline efforts to expand market presence, potentially stimulating long-term shareholder value.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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