Please ensure Javascript is enabled for purposes of website accessibility

Why Trivago Stock Popped Today

By Steve Symington – Updated Dec 2, 2019 at 5:53PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

This could be bargain hunters at work on Cyber Monday.

What happened

Shares of Trivago (TRVG -0.67%) 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.

Steve Symington has no position in any of the stocks mentioned. The Motley Fool recommends Trivago. The Motley Fool has a disclosure policy.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.