Trip.com stock falls nearly 5% as HSBC downgrade and earnings miss weigh on sentiment

Traders Union
All News
Stocks
Trip.com Group slides 4.65% today

Highlights

HSBC lowered its rating on Trip.com Group stock from buy to hold after the company posted quarterly earnings per share of $0.83, missing consensus expectations.
Trip.com Group's quarterly revenue reached $2.35 billion, beating analyst forecasts, and the Public Employees Retirement System of Ohio acquired 130,767 shares valued at $5.21 million.
Shares of Trip.com Group trade below key moving averages with momentum indicators showing oversold conditions, and the forecast range is $38.73 to $42.77 for the next five days.

Institutional buying contrasts with persistent selling on earnings reaction

HSBC downgraded Trip.com Group from 'buy' to 'hold', and the company reported quarterly earnings of $0.83 per share, slightly missing the consensus estimate. Quarterly revenue reached $2.35 billion, surpassing analyst expectations. The Public Employees Retirement System of Ohio acquired 130,767 shares valued at approximately $5.21 million, though price action has remained under broader selling pressure.

Anton Kharitonov, expert at Traders Union, sees Trip.com under sustained downward pressure after the HSBC downgrade and earnings miss. He points out the technical picture is decisively bearish, with all key moving averages broken and indicators deeply oversold. Institutional buying by the Public Employees Retirement System of Ohio has failed to support price sentiment, highlighting weak demand. Kharitonov warns that oversold signals can persist when sellers are this dominant. He concludes, "Market participants should be wary of further downside — there is little support if $40.71 fails."

Viktoras Karapetjanc, expert at Traders Union, maintains a constructive outlook for Trip.com despite recent volatility. He emphasizes that revenue outpaced analyst expectations, and large institutional accumulation shows underlying confidence. Karapetjanc views the current drop as a tactical reset that may present new opportunities as the oversold setup invites buyers. He states, "The bullish structure remains intact — stabilization above $40.71 could trigger renewed upward momentum and present attractive entry points."

Jainam Mehta, market strategist, notes that Trip.com trades within a sideways channel after a sharp gap down. He highlights neutral momentum readings and oversold oscillators, suggesting a tactical bounce is plausible if the support at $40.71 holds. Mehta adds that volatility and sentiment divergence may favor short-term contrarian plays. He concludes, "A quick rally toward resistance at $41.89 is possible if buyers step in above support — risk management remains key in this environment."

Bearish momentum established as technical signals confirm oversold pressure

Trip.com is trading below its 20-day ($45.45), 50-day ($44.13), and 200-day ($54.54) moving averages, confirming short-, medium-, and long-term seller pressure and a bearish alignment. The closest support is seen at $40.71, with immediate resistance at $41.89. Momentum signals are weak, with the Moving Average Convergence Divergence (MACD) and Average Directional Index (ADX) both neutral. The Relative Strength Index (RSI) at 39.92, Stochastic RSI at 0, and Commodity Channel Index (CCI) at -149.52 signal oversold conditions. Bull/Bear Power (BBP) registers at -0.58, confirming sellers dominate intraday momentum and the forecast remains oversold. The stock opened with a downside gap of about $2.03, or 4.65%, and currently sits near the high of its intraday range. Intraday volatility stands at 2.90%. The tone is of heavy selling pressure after the gap-down open, with no clear shift in momentum yet.

Earlier, analysts noted that despite short-term momentum, Trip.com’s broader technical setup remained bearish with downside risk prevailing. The recent sell-off on weak earnings and a downgrade further reinforces the bearish scenario, keeping a break below $40.71 as the key downside risk to monitor in the coming sessions.

Source of Data: TCOM Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.