TripAdvisor (TRIP) reported earnings 30 days ago. What's next for the stock?
Investors looking for stocks in the Internet - Commerce sector might want to consider either TripAdvisor (TRIP) or Coupang, Inc. (CPNG). But which of these two stocks presents investors with the better value opportunity right now?
I maintain a Strong Buy recommendation for Tripadvisor (TRIP) due to Viator's growth, a strong balance sheet, and potential strategic acquisitions. Viator's revenue and profitability trends are positive, with Q3 2024 marking the first time Viator's revenues have exceeded those of the legacy Tripadvisor segment. Despite a disappointing Q3 2024, management's optimistic outlook for Viator and TheFork segments bodes well for upcoming quarters.
TripAdvisor's stock plummeted after actively seeking a sale but failed to find a buyer, highlighting the market's (duly) skepticism about its competitive edge. Valuation challenges arise as profitable segments aren't growing and growing segments aren't profitable. TRIP is outcompeted by large competitors that enjoy network effects better. Its user-generated content is also challenged by AI tools and social media.
While the top- and bottom-line numbers for TripAdvisor (TRIP) give a sense of how the business performed in the quarter ended September 2024, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
TripAdvisor (TRIP) came out with quarterly earnings of $0.50 per share, beating the Zacks Consensus Estimate of $0.44 per share. This compares to earnings of $0.52 per share a year ago.
Tripadvisor, Inc. (NASDAQ:TRIP ) Q3 2024 Earnings Conference Call November 6, 2024 4:30 PM ET Company Participants Angela White - Vice President, Investor Relations Matt Goldberg - President & Chief Executive Officer Mike Noonan - Chief Financial Officer Conference Call Participants Ben Miller - Goldman Sachs Richard Clarke - Bernstein Naved Khan - B. Riley Securities Trevor Young - Barclays Jed Kelly - Oppenheimer James Lee - Mizuho Kevin Kopelman - TD Cowen Operator Good day and thank you for standing by.
Financial results from a rival could presage a pleasantly surprising quarter for Tripadvisor.
Shares of TripAdvisor are ripe for a turnaround after a ~30% decline this year, owing to decelerating travel spending. Despite bookings challenges at its main website, the company's Viator and TheFork brands continue to generate double-digit revenue growth. The company still benefits from secular tailwinds supporting higher spending on experiences, especially powering bookings at Viator.
NEW YORK, NY / ACCESSWIRE / September 13, 2024 / Levi & Korsinsky notifies investors that it has commenced an investigation of Tripadvisor, Inc. ("Tripadvisor") (NASDAQ:TRIP) concerning possible violations of federal securities laws. On May 9, 2024, the Company hosted its quarterly earnings call.
NEW YORK, NY / ACCESSWIRE / September 12, 2024 / Levi & Korsinsky notifies investors that it has commenced an investigation of Tripadvisor, Inc. ("Tripadvisor") (NASDAQ:TRIP) concerning possible violations of federal securities laws. On May 9, 2024, the Company hosted its quarterly earnings call.
NEW YORK, NY / ACCESSWIRE / September 11, 2024 / Levi & Korsinsky notifies investors that it has commenced an investigation of Tripadvisor, Inc. ("Tripadvisor") (NASDAQ:TRIP) concerning possible violations of federal securities laws. On May 9, 2024, the Company hosted its quarterly earnings call.