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TripAdvisor has climbed nearly 2% in the last twelve months. However, after the app ban in China, the stock price went down.
American online travel company TripAdvisor Inc (NASDAQ: TRIP) shares fell after China app ban. Apart from TripAdvisor, China also banned 104 other apps in the region. According to the Cyberspace Administration of China (CAC), the authority banned 105 apps for violating cyber regulations. Seeking Alpha reported that the travel company fell 1.68% to close yesterday at $29.49. At press time, in the pre-market trading, however, TripAdvisor is up 0.31% and is trading at $29.58.
In a press release published on the 8th of December, the CAC said that the administration has been watching out for mobile applications that promote pornography, violence, and other illegal information. Specifically, the CAC said that the authority began the mission to disallow apps that violate laws and regulations on the 5th of November.
TripAdvisor App Ban in China
Notably, the CAC did not highlight the reason for banning each app. The announcement noted that the prohibited apps were allegedly promoting fraud, gambling, prostitution, spreading pornography, and more.
Furthermore, the Chinese cyberspace administration also banned eight app stores. The apps stores include Software Emperor, dmfuns, 7755 app, Pippi Bus, Win Home, 7230 Mobile Games, and New Vision. As the announcement stated, the app stores were banned for not completing review requirements and giving access to downloading illegal applications.
The administration referred to the recently-banned apps as the first batch. This suggests that China has further plans to ban more apps. The announcement revealed:
“The Cyberspace Administration of China will continue to promote the rectification of mobile applications, strengthen the supervision and inspection of mobile application information services, promptly clean up and dispose of illegal and illegal mobile applications and application stores and strive to create a clean cyberspace.”
Although TripAdvisor is an America-based firm, the company is in partnership with Trip.com over its Chinese operations. TripAdvisor entered into the agreement with Trip.com in November 2019, after which Trip.com possessed a major share in the company.
According to the data by MarketWatch, TripAdvisor has climbed nearly 2% in the last twelve months. The company has also grown 38.91% in the last three months and 17.21% over the past month. TRIP also gained 3.04% in the last five days. However, the online travel company has declined by 2.93% in its year-to-date record.
Recently there has been an ongoing tension between the US and Chinese governments in cyberspace. The US government had ordered TikTok parent company ByteDance Ltd to sell the US arm of its video-sharing app over security concerns. In August, the Trump administration gave TikTok 90 days to sell its US operations to an American buyer.
Following the executive order by the US government, American companies such as Microsoft Corporation (NASDAQ: MSFT), Oracle Corporation (NYSE: ORCL), and Walmart Inc (NYSE: WMT) proposed to acquire TikTok US operations.