Why is Trip.com stock rising today?

Trip.com’s stock jumped 3.1% to HK$320.8 following its second-quarter earnings, showing only minor surprises. The company reported a net revenue of RMB 15.7 billion, a 6% increase year-over-year, and a net loss of RMB 2.4 billion. However, the loss was largely due to a one-time antitrust fine, not any decline in operations, leading investors to view the financial hit as non-recurring and push the stock up after an initial drop to HK$301.6.

The antitrust penalty had been anticipated, and its impact is visible in adjusted EBITDA, which fell to RMB 4.6 billion from RMB 4.9 billion in the same quarter last year.

Additionally, a series of positive developments in the travel sector bolstered the outlook for Trip.com. Chinese government ministries released policies aimed at optimizing natural resources for tourism development. Domestic flight bookings during the Golden Week holiday surpassed 6.88 million tickets, providing a tailwind for the company's accommodation and transportation booking platforms. Despite the travel sector's overall performance, Trip.com outperformed the Hang Seng index.