- TUI AG is expanding its hotel portfolio via a global hotel fund.
- TUI stock price is trading at £589 while witnessing a return of -0.07% during the intraday session.
- The year-to-date return of TUI stock price is -23.83%, and the three-month return is 7.31%.
Touristik Union International Group is a Hanover (Germany) based company engaged in leisure, travel, and tourism activities. It operates through Hotels and Resorts, Cruises, and TUI Musement segments.
Q2 Earnings and Revenue Report Analysis
On May 10, 2023, The TUI Group announced its 2nd quarter earnings, which didn’t indicate positive growth, where reported EPS (earning per share) -£110.727 failed to reach the -£81.146 estimated forecast of EPS by -£29.581.
However, the revenue report reflects positive growth of £24.64 Billion, where reported revenue is £277.073 Billion and the estimated forecast was £252.427 Billion.
In the Q2-2023 report and the recent developments in the tourism and travelsectorsr, the TUI stock price has witnessed returns of 4.63% and 7.31% in the past month and three months, respectively. But that bullish sentiment didn’t persist for long in the market, and the price observed a downfall of -8.28% in the previous week.
Pandemic and War Effect On Travel Gaint TUI Group
The Hanover-based firm received aid from the German government to survive the pandemic. When international travel came to a complete halt, the TUI Group borrowed heavily and now faces a €3.4 Billion net debt burden.
Alexei Mordashov, a Russian oligarch and confidante of Vladimir Putin, is the largest single shareholder of TUI stock listed under the sanctions due to the Ukraine-Russia war.
And the reversal split of the 1:10 ratio in February also impacted the downfall of about 50% in the TUI stock price.
New Development in Tui Group
TUI focuses on growth by expanding its hotel portfolio via a global hotel fund and acquiring “Emerald Zanzibar Resort & Spa” by TUI Hotels & Resorts.
There is hope of a bounce back in the price action of TUI stock. If the bulls take control and push the price to the £642 level, there is a possibility that it will reach the £700 level. And if bears snatch control, it will reach the £522 level.
Technical Analysis
The TUI stock price is currently trading below the 20, 50, 100, and 200-day EMAs, indicating weakness in the market and reflecting sellers’ heavy participation in the market.
The Relative Strength Index (RSI) trades at 46.47, which denotes the rise of bearish momentum in the market during the intraday session. However, The current market capitalisation of TUI’s stock price is £3.052 Billion, with an average volume of 769.43K shares.
Conclusion
The upcoming projects and recent developments raise the hope of growth. However, market sentiment favors bearish dominance. Investors should look at selling and buying opportunities.
Technical Levels
Major support: £497.2 and £522
Major resistance: £1091 and £988
Disclaimer
The views and opinions stated by the author, or any other person named in this article, are for informational purposes only. They do not provide financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.