Shares of TripAdvisor Inc. (TRIP 5.76%) got clipped today after the travel review site's chief financial officer made downbeat comments about the current quarter's growth. The stock closed down 4.9%.
At the JPMorgan Global Technology, Media, and Telecom Conference, CFO Ernst Teunissen reiterated the company's outlook for the current quarter, but said that there could be a deceleration in click-based and transaction revenue, adding that revenue growth in that category could be in the mid- to high-single digits after increasing 12% in the first quarter.
That statement spooked investors, causing the stock to tumble in afternoon trading. Management had called for a similar increase in the current quarter, but Teunissen's statement seemed to cast doubt on that even as he maintained the company's guidance.
TripAdvisor shares have been battered over the past year as the company's attempted transition to an online travel agent from just a travel recommendation site is taking longer than expected.
In the first quarter, overall revenue increased just 6%, and adjusted earnings per share fell 27% to $0.24.
Management is hoping that launching a national TV ad campaign this quarter will spur growth, but the stock seems risky as long as it's in free fall. Shares have stumbled by nearly two-thirds since their peak in 2014, and it appears the problems may continue after Teunissen's latest statement.