Since the beginning of the year, the price of trivago N.V. (TRVG), a website for searching and booking hotels, has plummeted by more than 50%. A key growth driver for the stock has been the company’s attention from Reddit traders after its fourth-quarter report was released on Wednesday. Are these real prospects what’s at stake for Trivago?
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The holiday quarter of 2021 saw Trivago’s revenue decline as expected, but the company is optimistic about recovering the tourism industry and accelerating growth in 2021. A Reddit trader demonstrated bullish views about Trivago two days after the report was published. The report believed that the company would return to profitability much sooner than expected as it recovered from the pandemic and gain significant benefits thanks to Expedia’s majority stake. Trivago shares may rise to $ 5 by the end of this year, according to a forecast presented by analysts.
Some investors don’t agree with these predictions, however. Even before the pandemic outbreak, many are pointing out that trivago N.V. (TRVG) ended up in the wrong position. This means that the company’s prospects for recovery when the tourist market slowly improves are uncertain.
After the restrictions are lifted, it isn’t easy to know how tourism will function. Deferred demand is strong on the one hand. Nevertheless, millions of travelers may postpone their trip after the pandemic due to the fears of being infected. This makes it tough to gauge Trivago’s prospects, so investing in them remains risky.
trivago N.V.(TRVG) is currently trading at $3.62, which means that its value has soared 189.60% above its 52-week low. TRVG shares are trading at $3.96 a share and $3.55 a share intraday. During the last year, shares of the company’s stock have hit a high of $5.88 and a low of $1.25, while recent sessions have witnessed an intraday change of only -2.69%.