Despegar.com Has a Lot to Prove on Thursday
If planning the perfect getaway is all about timing, it's fair to say that Despegar.com (NYSE: DESP) couldn't have gone public at a worse possible time. Market sentiment has soured on travel portals, weighing on the initial interest for the Latin American travel specialist.
Germany's Trivago (NASDAQ: TRVG) -- the last major online travel site to go public -- has shed 70% of its value since peaking four months ago, hitting yet another all-time low on Monday. Destination reviews hub TripAdvisor (NASDAQ: TRIP) has plummeted 72% since topping out three years ago. Even market darlings Priceline (NASDAQ: PCLN) and China's Ctrip.com (NASDAQ: CTRP) have proven mortal, currently fetching 17% and 22%, respectively, less than their summertime highs.
Despegar will get its first real test as a public company when it reports financial results on Thursday afternoon. Its third-quarter report will be the travel site operator's first earnings announcement since going public in September, and naturally there's a lot riding on the market's first impression.
Source: Fool.com
Despegar.Com Stock
Despegar.Com is currently one of the favorites of our community with 10 Buy predictions and no Sell predictions.
With a target price of 14 € there is a positive potential of 49.73% for Despegar.Com compared to the current price of 9.35 €.
