The S&P 500’s top gainers on May 9 were:
TripAdvisor, which is an American travel and restaurant website company, was the S&P 500’s top gainer on May 9. After a brief pullback on Tuesday, TripAdvisor opened higher on Wednesday and rose to one-year high price levels.
The market sentiment on TripAdvisor improved on Wednesday amid the release of the stronger-than-expected 1Q18 earnings report. According to management, the EPS (earnings per share) in 1Q18 was $0.3, which is better than analysts’ forecast of $0.16. The revenues increased from $372 million reported a year ago to $378 million in 1Q18. The 1Q18 net income was $5 million or $0.04 per share—lower than the net income of $13 million or $0.09 per share reported a year ago.
The increase in user reviews supported TripAdvisor’s rally on May 9. The user reviews have a direct influence on the revenue growth. According to management, the user reviews increased 26% in 1Q18 compared to the same period a year ago. Regarding the outlook, management expects the adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) to grow in 2018—an upgrade from the previous forecast of flat EBITDA.
On May 9, TripAdvisor gained 22.8% and closed the day at $47.62. TripAdvisor is part of the S&P 500 Consumer Discretionary sector, which gained 0.35% on May 9.
Next, we’ll discuss how Electronic Arts performed on Wednesday.