Use Trivago To Fund The Travel Recovery Bet

Nov. 19, 2021 1:38 PM ETtrivago N.V. (TRVG) StockTRVG1 Comment
Rogue Trader
1.52K Followers

Summary

  • trivago faces several key risks to which it’s very exposed.
  • The risks are playing out as evident in trivago’s results.
  • The travel rebound could create upside in trivago’s results and even the stock but this shouldn’t be long-lived.
  • Outright shorting could be dangerous due to a potentially strong relief rally but the stock could be used as a source of funds for investing elsewhere in the industry.

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Investment Thesis

I do not recommend owning trivago (NASDAQ:TRVG) stock. In my opinion, its future is in doubt. Its revenue concentration eliminates any pricing power it may have and creates extremely high channel risk that has already

This article was written by

1.52K Followers
Ex HF portfolio manager, Ex management consultant. Now I manage my own money and focus on anything that can create alpha. I will write on any idea I have and lay out my thesis and analysis openly to get feedback from and discuss with the SA community.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of BKNG, LUV either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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