We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Trivago (TRVG) Stock Slips on Financial Reporting "Weakness"
Read MoreHide Full Article
Shares of Trivago (TRVG - Free Report) suddenly dropped nearly 2.8% in afternoon trading Thursday after the hotel search provider disclosed a self-identified weakness in its financial reporting.
The revelation came within the company’s 20-F annual report, which was posted on the SEC’s website earlier today. In the filing, Trivago said that it identified an issue in its financial reporting practices that may cause even more issues in the future.
“We have identified a material weakness in our internal control over financial reporting and may identify additional material weaknesses in the future that may cause us to fail to meet our reporting obligations or result in material misstatements of our financial statements,” the company said.
Trivago, which is based in Germany, held its initial public offering in December. The company cited its IPO and the inexperience of its employees in dealing with U.S. general accounting practices as the primary reason for the weakness.
However, according to the company’s 20-F filing, the problem was first identified during the preparation of its 2015 financial statements. Trivago said that it hired a chief financial officer in 2016 that is responsible for identifying the staffing and resources needed to remediate the weakness, but as of December 31, 2016, the issue remained “unremediated.”
Trivago continued by saying that it has already hired two employees with experience in financial reporting, as well as an SEC in-house counsel. The company said that it expects the weakness to be remediated by December 31, 2017.
The report also said that the company could not provide an estimate of costs associated with solving the problem, but it did mention that remediation measures “may be time consuming, costly, and might place significant demands on our financial and operational resources.”
Travel and hotel planning website Expedia (EXPE - Free Report) owns a majority stake in Trivago. Shares of EXPE were up nearly 1.5% in morning trading Thursday, but the stock was flat by mid-afternoon.
Stocks that Aren't in the News. Yet.
You are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. Many of these companies are almost unheard of by the general public and just starting to get noticed by Wall Street. They have been pinpointed by the Zacks system that nearly tripled the market from 1988 through 2015 with a stellar average gain of +26% per year. See these high-potential stocks free >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Trivago (TRVG) Stock Slips on Financial Reporting "Weakness"
Shares of Trivago (TRVG - Free Report) suddenly dropped nearly 2.8% in afternoon trading Thursday after the hotel search provider disclosed a self-identified weakness in its financial reporting.
The revelation came within the company’s 20-F annual report, which was posted on the SEC’s website earlier today. In the filing, Trivago said that it identified an issue in its financial reporting practices that may cause even more issues in the future.
“We have identified a material weakness in our internal control over financial reporting and may identify additional material weaknesses in the future that may cause us to fail to meet our reporting obligations or result in material misstatements of our financial statements,” the company said.
Trivago, which is based in Germany, held its initial public offering in December. The company cited its IPO and the inexperience of its employees in dealing with U.S. general accounting practices as the primary reason for the weakness.
However, according to the company’s 20-F filing, the problem was first identified during the preparation of its 2015 financial statements. Trivago said that it hired a chief financial officer in 2016 that is responsible for identifying the staffing and resources needed to remediate the weakness, but as of December 31, 2016, the issue remained “unremediated.”
Trivago continued by saying that it has already hired two employees with experience in financial reporting, as well as an SEC in-house counsel. The company said that it expects the weakness to be remediated by December 31, 2017.
The report also said that the company could not provide an estimate of costs associated with solving the problem, but it did mention that remediation measures “may be time consuming, costly, and might place significant demands on our financial and operational resources.”
Travel and hotel planning website Expedia (EXPE - Free Report) owns a majority stake in Trivago. Shares of EXPE were up nearly 1.5% in morning trading Thursday, but the stock was flat by mid-afternoon.
Stocks that Aren't in the News. Yet.
You are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. Many of these companies are almost unheard of by the general public and just starting to get noticed by Wall Street. They have been pinpointed by the Zacks system that nearly tripled the market from 1988 through 2015 with a stellar average gain of +26% per year. See these high-potential stocks free >>