Trivago Hits Record Low on Revenue Shortfall, Coronavirus Impact

(Bloomberg) -- Trivago NV is shifting its focus to profitability over growth, but a shortfall in sales underscores how competitive the online travel business has become.

Shares of Trivago plunged as much as 21% intraday to $2.30 after revenue for the fourth quarter declined year over year and missed Wall Street’s lowest analyst projection. The stock touched a record low Wednesday compared to a 0.4% climb in the S&P 500 index as of 10:23 a.m. in New York.

According to JPMorgan, the ongoing headwinds that management laid out “will require incremental strategic changes” as uncertainties in the first half of the year limit visibility further out. Analyst Doug Anmuth reiterated his underweight rating, highlighting his “even more cautious” view on the stock.

Trivago declined to offer guidance for 2020 but the rough patch may continue as the coronavirus is seen negatively impacting the sector. Mandeep Singh, a Bloomberg Intelligence analyst, estimates the “outbreak could curtail bookings growth” for the online travel market by 75 to 100 basis points this year.

To contact the reporter on this story: Kamaron Leach in New York at kleach6@bloomberg.net

To contact the editors responsible for this story: Catherine Larkin at clarkin4@bloomberg.net, Kristine Owram

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