Last Updated: 19 Sep 2024
Executive Summary
TripAdvisor Inc. (TRIP) is an online travel company headquartered in Needham, Massachusetts. The company operates a website and mobile application that allows users to book travel accommodations, activities, and experiences. TripAdvisor also provides reviews and ratings of travel destinations and businesses.
The company's financial performance has been mixed in recent years. Revenue has grown steadily, but profitability has been volatile. In 2023, the company reported revenue of $1.815 billion and EBITDA of $172 million. The company's net income was $106 million, or $0.17 per share.
TripAdvisor is facing a number of challenges, including competition from other online travel agencies and the rise of alternative accommodation options such as Airbnb. However, the company has a strong brand and a loyal customer base. The company is also well-positioned to benefit from the growing trend towards online travel booking.
Company Overview
TripAdvisor was founded in 2000 by Stephen Kaufer, Langley Steinert, and Nick Shanny. The company's initial focus was on providing user-generated reviews of travel destinations and businesses. Over time, TripAdvisor has expanded its offerings to include online booking, activities, and experiences.
The company's website and mobile application are available in 28 languages and cover more than 8 million businesses. TripAdvisor also operates a number of other travel websites, including Viator, Bokun, and TheFork.
Fundamental Analysis
TripAdvisor's financial performance has been mixed in recent years. Revenue has grown steadily, but profitability has been volatile. In 2023, the company reported revenue of $1.815 billion and EBITDA of $172 million. The company's net income was $106 million, or $0.17 per share.
The company's gross margin has been declining in recent years, due to increased competition from other online travel agencies. However, the company's operating margin has improved, due to cost-cutting measures.
TripAdvisor's balance sheet is strong. The company has $1.2 billion in cash and equivalents and no debt. The company's free cash flow was $142 million in 2023.
Technical Analysis
TripAdvisor's stock price has been trending lower in recent months. The stock is currently trading at $14.06, which is below its 50-day and 200-day moving averages. The stock's relative strength index (RSI) is 35, which indicates that the stock is oversold.
The stock's support level is at $13.00, which is the low from March 2023. The stock's resistance level is at $15.00, which is the high from February 2023.
Short Term Outlook
The short-term outlook for TripAdvisor is mixed. The stock is currently trading below its moving averages and is oversold. However, the company's financial performance is improving and the stock is trading at a discount to its peers.
In the short term, the stock could trade sideways or move lower. However, if the company can continue to improve its financial performance, the stock could rebound.
Long Term Outlook
The long-term outlook for TripAdvisor is positive. The company has a strong brand and a loyal customer base. The company is also well-positioned to benefit from the growing trend towards online travel booking.
In the long term, the stock could trade higher as the company continues to grow its revenue and profitability.
Analyst Recommendations
Analysts are mixed on TripAdvisor. Two analysts have a strong buy rating, two have a buy rating, 13 have a hold rating, two have a sell rating, and one has a strong sell rating.
The average analyst target price is $18.87, which is 34% above the current price.
