Shares of online travel agency Tuniu (NASDAQ:TOUR) are jumping 42% in morning trading. TOUR stock is rallying after China eased its anti-coronavirus restrictions that affect travel.
China announced it has reduced the amount of time those traveling to the country must quarantine themselves. Going forward, such travelers must be isolated for ten days, down from three weeks previously. Additionally, the government will no longer require inbound travelers to undergo coronavirus tests in labs. Instead, they will be able to be tested with throat swabs.
What’s Happening With TOUR Stock
In the first quarter, Tuniu’s top line tumbled 46% year-over-year (YOY) to $6.5 million. “The decrease was primarily due to the negative impact brought by the outbreak and spread of Covid-19,” the company reported. Likewise, Tuniu’s gross profit sank 45% YOY. The company’s loss from operations, however, fell slightly YOY to 52.8 million yuan, or $8.3 million. Tuniu’s noted that its operating expenses have dropped for five consecutive quarters.
“Despite recent challenges in the external environment, we have continued to fully leverage Tuniu’s core competencies and strengths in product innovation and service quality to provide customers with safe and secure travel experiences,” Tuniu founder, Chairman and CEO Donald Dunde Yu said in a statement.
In the years before the coronavirus pandemic began, Tuniu’s annual revenues were several times higher than they have been since. In 2018 and 2019, the company reported annual revenue of $326 million and $328 million, respectively. In 2020 and 2021, it generated sales of $69 million and $67.4 million, respectively.
TOUR stock has a market capitalization of $84 million. The shares have tumbled 32% so far in 2022.
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On the date of publication, Larry Ramer did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.