We recently published a list of 10 Stocks Take A Shocking Nosedive. Trip.com Group Limited (NASDAQ:TCOM) is one of the worst-performing stocks on Thursday.
Trip.com Group saw its share prices drop by 6.81 percent on Wednesday to finish at $56.54 apiece following news that one of China’s e-commerce giants is making foray into the travel sector with a hotel membership program.
In an open letter to hoteliers, JD.com said that it would provide supply-chain services without any commission for three years in a bid to lower operational costs, enhance guest experience, and support consumer traffic to hoteliers.
The announcement weighed in on investor sentiment for Trip.com Group Limited (NASDAQ:TCOM), one of the leading multinational travel agencies globally.
Trip.com Group Limited’s (NASDAQ:TCOM) drop followed the company’s “buy” recommendation from investment firm Jefferies, with a price target of $80.
A customer in a travel agents office, highlighting the convenience of the companies corporate travel solutions.
According to Jefferies, its analysis reflected its share repurchase agreement with MakeMyTrip, under which, Trip.com Group Limited (NASDAQ:TCOM) will sell a portion of its Class B ordinary shares back to MakeMyTrip for cancellation.
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Disclosure: None. This article is originally published at Insider Monkey.
