Why TripAdvisor Inc. Stock Slipped Today

By Jeremy Bowman Markets Fool.com

What happened

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Shares ofTripAdvisor Inc.(NASDAQ: TRIP) got clipped today after the travel review site's chief financial officer made downbeat comments about the current quarter's growth.The stock closed down 4.9%.

So what

At theJPMorganGlobal Technology, Media, and Telecom Conference, CFO Ernst Teunissen reiterated the company's outlook for the current quarter, but said that there could be a deceleration in click-based and transaction revenue, adding that revenue growth in that category could be in the mid- to high-single digits after increasing 12% in the first quarter.

Image source: Getty Images.

That statement spooked investors, causing the stock to tumble in afternoon trading. Management had called for a similar increase in the current quarter, but Teunissen's statement seemed to cast doubt on that even as he maintained the company's guidance.

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Now what

TripAdvisor shares have been battered over the past year as the company's attempted transition to an online travel agent from just a travel recommendation site is taking longer than expected.

In the first quarter, overall revenue increased just 6%, and adjusted earnings per share fell 27% to $0.24.

Management is hoping that launching a national TV ad campaign this quarter will spur growth, but the stock seems risky as long as it's in free fall. Shares have stumbled by nearly two-thirds since their peak in 2014, and it appears the problems may continue after Teunissen's latest statement.

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Jeremy Bowman has no position in any stocks mentioned. The Motley Fool owns shares of and recommends TripAdvisor. The Motley Fool has a disclosure policy.