TripAdvisor stock gets slammed following Q3 earnings

Yahoo Finance Live anchors discuss third-quarter earnings for TripAdvisor.

Video Transcript

BRIAN SOZZI: All right, Tripadvisor shares sinking after missing earnings estimates in the third quarter and noting a step down in revenue for the fourth quarter. Wow, that is some ugly price action here, probably one of the worst receptions we have seen, Brad, from a travel company this earnings season. A lot of these companies have put up very good results. Jefferies out moments ago with an underperform rating on Tripadvisor, saying they're tired of the management team focusing on unprofitable businesses. So Tripadvisor getting slammed by the folks at Jefferies.

BRAD SMITH: Yeah, and this is kind of a year ago comparison story, too. They talked about within this most recent earnings report a year ago, Delta, Omicron strains impacting travel, especially in Europe as well. And some of those year over year comps come back to how customers are changing some of their own booking appetites. Tripadvisor, for them, revenue improved significantly from a year ago.

Of course, the inputs or the factors that you're dealing with are not the same. Investors right now are looking at Tripadvisor shares down 21%. Perhaps they're looking at the fact that, OK, if people aren't booking travel or going to continue to book travel in the future because of their own tightening of their expenditures or travel and that revenge travel starts to dry up, what does that mean for a Tripadvisor?

BRIAN SOZZI: Not a good thing.

BRAD SMITH: According to the market.

BRIAN SOZZI: Really, a bad thing. A very bad thing.