Tripadvisor shares rose 2.9% to $39.55 this morning despite reporting a fourth-quarter loss of 54 cents per share, exceeding the 26 cents per share loss that Wall Street analysts had expected.
The rise came after the company announced that its revenues exceeded expectations, noting that the travel sector will witness an increase in demand with the continued application of vaccines for the accelerating Corona virus, which means achieving better results later during the current year. Before announcing these results, the company received an increase in its share price target from Before Deutsche Bank from $36 to $38.
Tripadvisor has been witnessing for several months now a noticeable improvement in results after its shares fell to an all-time low on March 18 when it recorded $13.72, while it is now enjoying its yearly highs after its share rose by 109.8% over the past nine months.
The interest on short selling or emptying the company’s stock has fallen by 28.3% over the past two quarters, but the $10.77 million short-sold shares represent only 11.5% of the stock available for trading, or the equivalent of the total buying power of more than 3 days combined.
According to analysts, the current time seems to be the most appropriate time to acquire Tripadvisor shares at a low price, and it is worth noting that the company’s stock volatility index SVI recorded 67%, which is higher than about 22% of its annual readings, indicating that investors are evaluating the stock price with relatively little volatility expectations at the moment.