Why TripAdvisor, Expedia Group, and Party City Holdco Slumped Today

The trade dispute between the U.S. and China has weighed on investors' minds for months now, and until recently, it seemed like a resolution might be unattainable. Yet the two nations appeared to make a big step forward today, with major benchmarks climbing into record territory after reports that tariffs could see gradual declines in the near future. Even so, some stocks weren't able to participate in the rally. TripAdvisor (NASDAQ: TRIP), Expedia Group (NASDAQ: EXPE), and Party City Holdco (NYSE: PRTY) were among the worst performers. Here's why they did so poorly.

TripAdvisor and Expedia both saw dramatic drops Thursday, losing 22% and 27%, respectively. The two online travel companies saw many of the same trends hit their respective businesses during the third quarter. For Expedia, declines in earnings from year-earlier levels and a less optimistic forecast for performance from hotel booking site Trivago and home-sharing service VRBO combined to hurt investor sentiment. TripAdvisor saw even more struggles, with a 7% drop in revenue causing earnings per share to fall almost 20% year over year.

Image source: TripAdvisor.

Source Fool.com