Shares of Trivago N.V. tumbled 24% on heavy volume in afternoon trade Friday, after the Germany-based hotel booking site reported a surprise second-quarter loss amid increased marketing spend. Volume ballooned to over 6.2 million shares, compared with the full-day average of about 1.2 million shares. The company reported a U.S. dollar equivalent loss of a penny a share, compared with consensus analyst expectations for a breakeven quarter, according to FactSet. Analyst Shyam Patel at Susquehanna Financial cut his stock price target to $21 from $23, citing a lower outlook for 2018 after management said it continued to expect revenue growth to decelerate. "We continue to like Trivago, given its leadership position in the hotel metasearch space, large runway for growth and ability to sclare margins over time," Patel wrote in a note to clients. But given concerns over valuation, Patel kept the rating at neutral. The stock, which went public on Dec. 16, 2016, was still trading 49% above its $11 IPO price. Meanwhile, the S&P 500 has gained 9.5% over the same time.
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