Trip.com downgraded to HOLD after Q2 revenue guidance miss and regulatory risks in China.

Astrada Advisors downgraded Trip.com from BUY to HOLD following its Q1 results. Although Q1 revenue slightly beat expectations, the Q2 revenue growth guidance of 3%-8% fell short of market expectations, indicating potential margin pressure ahead. Additionally, ongoing antimonopoly investigations in China pose risks to Trip.com's dominant market position and monetization model, which could lead to fines and reduced profitability. The current valuation at 10 times 2027 estimated earnings reflects these uncertainties and risks, especially if China's consumer demand weakens further.