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Why Trip.com (TCOM) Stock Is Trading Higher
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Why Trip.com (TCOM) Stock Is Trading Higher
Dec 9, 2024 9:08 AM

Trip.com Group Ltd ( TCOM ) shares are trading higher by 10.4% to $76.26 during Monday’s session. Shares of U.S.-listed Chinese stocks are trading higher following reports suggesting Chinese officials would embrace a ‘moderately loose’ monetary policy.

What To Know: Trip.com ( TCOM ), a leading global travel services provider based in China, is primed for a potential stock surge as U.S.-listed Chinese equities gain traction ahead of China's highly anticipated Central Economic Work Conference.

Investors are closely watching as policymakers, led by President Xi Jinping, signal a more proactive fiscal stance and a moderately looser monetary policy for 2025, focusing on boosting domestic consumption and stabilizing key markets, including tourism.

Read Also: Super Micro Surges 10% On Monday Pre-Market After Company Gets Nasdaq Extension To File Annual Report

The Politburo's commitment to supporting sectors tied to domestic growth is a tailwind for Trip.com ( TCOM ), whose business is intrinsically linked to consumer travel demand.

As China emerges from pandemic-related disruptions, Trip.com ( TCOM ) has already demonstrated resilience and a robust recovery, with expanding revenues fueled by pent-up travel demand. The company stands to benefit from policy measures likely to enhance disposable incomes and consumer confidence.

Additionally, projected fiscal expansion and rate cuts may lower operational costs and improve profit margins for travel companies.

Read Also: Nvidia Hit With Antitrust Probe in China, Stock Slides

How To Buy TCOM Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Trip.com Group’s case, it is in the Consumer Discretionary sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

According to data from Benzinga Pro, TCOM has a 52-week high of $69.67 and a 52-week low of $32.66.

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