Trip.com Shares Soar 3.28% on Q1 Earnings

Trip.com (TCOM) shares surged 3.28% today, reaching their highest level since February 2025, with an intraday decline of NaN%.

The strategy of buying TCOM shares after they reached a recent high and holding for 1 week resulted in strong performance, significantly outperforming the market over the past 5 years. Here’s a detailed analysis:

Overall Performance: The strategy achieved a 350% return over the past 5 years, compared to the broader market’s 135% return. This demonstrates that the strategy capitalized on TCOM’s growth, delivering substantial gains.

Monthly Returns: TCOM exhibited a 194% return over the last three years, including a 16% increase in Q1 2025, highlighting consistent growth. This performance is a key driver of the strategy’s success.

Earnings-Related Movements: TCOM historically moved higher leading into earnings more often than not, with an average pre-earnings period gain of 4.2%. This pattern likely contributed to the strategy’s positive returns, as it capitalized on the anticipation and release of earnings-related news.

Recent Performance: In May 2025, TCOM’s share price fell 10% but the three-year return stands at 196%, indicating that recent fluctuations do not significantly impact the long-term growth.

Market Outperformance: The strategy’s returns exceed the market average, indicating that TCOM’s strong fundamentals and growth prospects outweighed broader market fluctuations.

In conclusion, the strategy of buying TCOM after reaching a recent high and holding for 1 week is a robust approach, levering on TCOM’s consistent growth and market outperformance. This strategy would be particularly suitable for investors with a medium to long-term horizon and a tolerance for short-term volatility.

Trip.com Group reported robust first-quarter financial results for 2025, with net revenue increasing by 16% year-over-year to RMB13.8 billion. This growth, however, was accompanied by a decrease in profit compared to the same period last year, with the bottom line totaling RMB4.28 billion. The company's earnings per share for the quarter were $0.60, exceeding the Zacks Consensus Estimate of $0.52 per share. Despite the positive earnings report, Trip.com shares experienced a decline of 1.79% after-hours, trading at $65.90, following a general decrease in the stock price year-to-date. This decline could be attributed to broader market movements and investor sentiment.

Options trading activity for Trip.com has increased significantly ahead of upcoming earnings announcements, indicating heightened investor interest and speculation about future performance. The company's share price has climbed by 18% over the last month and by 5.7% over the last week, reflecting a positive sentiment possibly influenced by broader market movements. This surge in options trading suggests that investors are closely monitoring Trip.com's performance and are optimistic about its future prospects. The increased trading activity also highlights the company's potential for growth and its ability to attract investor attention.