TripAdvisor batch falls after Guggenheim downgrades on changing landscape in online travel

Shares of TripAdvisor Inc.

TRIP, +1.86%

are down 0.8% in premarket trade Wednesday after Guggenheim researcher Jake Fuller downgraded a batch to sell from neutral. He wrote that online-travel agencies are prioritizing margins over room-night growth, “which has undermined meta channel expansion and might not be done.” Fuller also sees a “tough rival backdrop” now that competitors are spending some-more on ads and TripAdvisor is pulling behind spending. “Trivago

TRVG, +3.06%

should spend scarcely dual times a volume we plan for TripAdvisor,” he wrote. Fuller now has a $40 cost aim on TripAdvisor’s stock, that is adult 6% over a past 12 months, compared with a 13% arise for a SP 500

SPX, +0.45%

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