Why Tuniu Stock Got Crushed Today
Shares of Tuniu Corporation (NASDAQ: TOUR), a travel company based in China, got crushed on Tuesday after the company released uninspiring results for the third quarter of 2020. Because of the COVID-19 pandemic, revenue is down sharply, leading to the stock's decline. As of 11:30 a.m. EST, Tuniu stock was down 18%.
Tuniu offers travel services, including guided international tour packages. Therefore, it doesn't just matter what's happening in China with the coronavirus -- it also matters what's happening in other countries.
As the pandemic rages on, there's almost no demand for Tuniu's services. Revenue in Q3 was down almost 86% year over year to a mere $18 million. This drop in revenue resulted in a net loss of $9 million.
Source Fool.com
