Shares of Tuniu Corporation (TOUR) stock rallied in the pre-market trading session on August 27, 2021. TOUR stock price saw a push of 4.97% to reach $1.69 a share as of this writing. The stock had gained momentum in the previous trade and went up by 0.62% at closing. Let’s try to figure out the reason behind this bull.

What’s Happening?

Tuniu Corporation stock is operating as an online leisure travel company in the People’s Republic of China. It offers various tour-related services to leisure travelers.  There is no stock-specific news today to support the bullish sentiment. No news of analysts’ upgrades has been recently appeared to justify this rally. The stock has gained 8.67% in the last five days.  It seems that the sentiment regarding TOUR stock is positive in social media communities that are pushing this stock up. Let’s discuss some recent events of Tuniu Corporation.

Q2,2021 Financial Results:

TOUR stock has announced second-quarter 2021 unaudited financial results on August 23, 2021, the highlights of which are given below.

• Tuniu stock generated RMB161.0 million in net revenue in the second quarter of 2021. This represents an extraordinary growth of 373.1% as compared to the prior year’s same period. Revenues from packaged tours reached RMB126.5 million while other revenues totaled RMB34.5 million.
• Cost of revenues increased by 249.8% from Q2,2020 to reach RMB92.0 million in the second quarter of 2021. TOUR stock recorded 57.1% cost of revenue in Q2,2021 while it was 77.3% in Q2,2020.
• The gross profit for the Tuniu stock exceptionally increased by 792.2% from Q2,2020 to reach RMB69.0 million in Q2,2021.
• TOUR stock spent RMB95.1 million in operating expenses for the three months ended June 30, 2021. These expenses decreased 39.8% from the same tenure of the previous year.
• Loss from operating decreased from RMB150.3 million in Q2,2020 to RMB26.2 million in Q2,2021. Non-GAAP net loss was RMB8.4 million in the three months ended June 30, 2021.
• Tuniu had RMB1.1 billion in cash, cash equivalent, restricted cash, and short-term investments as of June 30, 2021.

Business Outlook of TOUR stock:

TOUR stock is expecting RMB111.2 million to RMB123.5 million net revenue for the third quarter of 2021. This represents a decrease of 0% to 10% over the year. The management has provided this guidance by considering the industry and its current operations. This forecast might be subject to change depending on market conditions.