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Why Trivago Stock Popped Today

By Steve Symington - Dec 2, 2019 at 5:18PM

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This could be bargain hunters at work on Cyber Monday.

What happened

Shares of Trivago ( TRVG -4.19% ) soared 11.6% on Monday, defying both the broader market's decline (with the S&P 500 down around 0.9% today), and a lack of company specific news.

So what

To be sure, there were no new press releases, industry developments, analyst notes, or Securities and Exchange Commission filings that might otherwise spur such a pop. But it helps that Trivago closed Friday at a fresh all-time low, with its losses most recently amplified last month by a combination of its weaker-than-expected quarterly earnings and the surprise replacement of its CEO. 

Stock market data on an LED display with red and green indicating change.

Image source: Getty Images.

Now what

Remember, shares are still down around 56% even after today's pop -- but it's not hard to argue that Trivago's punishment doesn't fit the crime considering its top-line headwinds are the result of focusing on higher-quality transactions rather than chasing unprofitable growth. For patient investors willing to focus on the progress in Trivago's underlying business, it's possible this could be an excellent place to consider opening or adding to a position in the stock.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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