What happened

One day after Tripadvisor Inc (TRIP -0.59%) shares popped on a better-than-expected earnings report, they were giving back some of those gains, falling with the broader market on concerns about a slowing global economy. Tripadvisor shares closed down 5.4%.

So what

Falling oil prices and weak numbers on the Chinese economy seemed to spook investors, who pushed the Nasdaq down 1.7% today. The travel sector is highly sensitive to the macroeconomic environment, and therefore, Tripadvisor shares may have sold off on concerns about a slowing economy.

However, its online travel-agency peers like Booking Holdings and Expedia did not fall as sharply, a sign that investors may believe that the stock was overbought after yesterday's rally. 

A woman in a pink hat stands on a bridge over a canal in Venice watching a gondola.

Image source: Getty Images.

In yesterday's earnings report, adjusted earnings per share doubled to $0.72, but revenue only grew 4% as the company's hotel segment continues to struggle and its profit growth was driven by lower marketing expenses.

Now what 

Tripadvisor shares have surged 84% this year. The company's turnaround is finally gaining traction after several quarters of declining revenue and profit from a busted attempt to add an "instant booking" platform, as well as headwinds from the transition from desktop to mobile. Today's sell-off notwithstanding, investors have to be encouraged by the surge in profits, but the company ultimately will have to deliver faster revenue growth in order for the stock's momentum to continue.