Why Did Trivago Plunge 17.65% Despite 17% Revenue Growth?

Generated by AI AgentAinvest Pre-Market Radar
Wednesday, Aug 6, 2025 8:04 am ET1min read
TRVG--
Aime RobotAime Summary

- Trivago's stock fell 17.65% pre-market on August 6, 2025, despite 17% Q2 revenue growth driven by referral revenue.

- The company reported a €6.5M net loss but improved Adjusted EBITDA to €5.1M, citing strategic initiatives.

- Analysts gave mixed ratings, averaging $4.87 price target (0.42% upside) with a 'Hold' consensus.

- Trivago aims for double-digit Q3 growth and positive Adjusted EBITDA by year-end.

Trivago's stock price plummeted by 17.65% in pre-market trading on August 6, 2025, marking a significant decline for the travel search platform.

Trivago reported a 17% year-over-year revenue growth in the second quarter of 2025, driven by an 18% increase in referral revenue. The company's total revenue reached €139.3 million, with referral revenue accounting for €138.5 million. This growth was attributed to strategic initiatives and improved guidance, despite financial performance challenges.

Despite the revenue growth, TrivagoTRVG-- reported a net loss of €6.5 million for the second quarter. However, the Adjusted EBITDA loss improved to €5.1 million. The company remains optimistic about maintaining robust double-digit revenue growth in the third quarter and aims to achieve a positive Adjusted EBITDA by the end of the year.

Analysts have mixed opinions on Trivago's stock. The average price target from five analysts is $4.87, with projections ranging from $4.05 to $5.57. This implies a minimal upside of 0.42% from the current price. The consensus recommendation from seven brokerage firms is a "Hold," with an average rating of 3.0. GuruFocus's GF Value metric suggests a potential upside of 28.79% from the current trading price, indicating a fair market value of $6.24 in one year.

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