TCOM Should I Buy
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Trip.com Group Ltd (TCOM) is not a strong buy at the moment for a beginner, long-term investor. While the company has shown impressive financial growth in the latest quarter, the technical indicators are bearish, and there are negative catalysts such as regulatory concerns and legal investigations that could weigh on the stock in the near term. Additionally, there are no strong trading signals or significant positive momentum to justify an immediate buy.
The technical indicators for TCOM are bearish. The MACD is negatively expanding, the RSI is neutral, and the moving averages indicate a bearish trend (SMA_200 > SMA_20 > SMA_5). The stock is trading near its support level of 52.265, with resistance at 54.206. Overall, the trend does not suggest an immediate upward move.
Strong Q4 financial performance with revenue up 20.83% YoY and net income up 98.38% YoY.
Hedge funds are significantly increasing their positions in the stock, with a 118.94% increase in buying activity last quarter.
Regulatory concerns and an antitrust investigation, which have led to a 17% drop in stock price recently.
Legal investigations and potential class action lawsuits by Rosen Law Firm, creating uncertainty.
Bearish technical indicators and lack of strong trading signals.
In Q4 2025, TCOM reported revenue of RMB 15.4 billion (US$2.2 billion), a 20.83% YoY increase. Net income grew by 98.38% YoY to RMB 4.28 billion, and EPS increased by 100.33% YoY to 6.11. However, gross margin slightly declined by 0.40% YoY to 78.96.
Analysts remain constructive on TCOM with Buy and Overweight ratings, but several firms have lowered their price targets due to margin pressures and lower industry multiples. The revised price targets range from $68 to $79, with an average target of approximately $73.50.
