TripAdvisor (TRIP) AI Stock Analysis

• Market Cap: $1.73B
• Dividend Yield: N/A
• Average Volume (3M): 2.60M
• Price to Earnings (P/E): 23.4
• Beta (1Y): 1.36
• Revenue Growth: 4.24%
• EPS Growth: 159.81%
• Country: US
• Employees: 2,770
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Travel Services
• EPS (TTM): 0.65
• Shares Outstanding: 116,908,340
• 10 Day Avg. Volume: 2,965,920
• 30 Day Avg. Volume: 2,596,802
• PEG Ratio: -8.25
• Price to Book (P/B): 2.18
• Price to Sales (P/S): 1.12
• P/FCF Ratio: 29.33
• Enterprise Value/Market Cap: 1.18
• Enterprise Value/Revenue: 1.08
• Enterprise Value/Gross Profit: 1.15
• Enterprise Value/Ebitda: 8.69
• 1Y Price Target: $16.86
• Price Target Upside: 13.61% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 10
• EPS Forecast (FY): 1.34
• Revenue Forecast (FY): $1.90B

• Rating: 67 Neutral
• Price Target: $17.00 ▲(14.56% Upside)

TripAdvisor's overall score is driven by strong financial performance and promising strategic initiatives in experiences and AI, as highlighted in the earnings call. However, technical indicators suggest neutral to bearish momentum, and valuation metrics indicate moderate attractiveness. Challenges in the Brand segment and lack of a dividend yield also weigh on the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a stable demand for TripAdvisor's services, supporting long-term business sustainability and market presence.

AI and Future Strategy

The strategic focus on AI positions TripAdvisor to enhance user experience and operational efficiency, potentially leading to competitive advantages.

Segment Performance

Strong performance in TheFork segment highlights successful diversification and potential for increased profitability in niche markets.

Negative Factors

Brand Revenue Decline

Declining brand revenue suggests challenges in maintaining user engagement and market share, potentially impacting long-term growth.

Traffic Volume Headwinds

Traffic headwinds can hinder revenue growth and affect the effectiveness of marketing strategies, posing risks to future performance.

Challenges in Hotel & Media Revenue

Declines in hotel and media revenue indicate competitive pressures and potential market saturation, affecting overall profitability.

TripAdvisor Business Overview & Revenue Model

Company Description

TripAdvisor, Inc. operates as an online travel company. It operates in two segments, Hotels, Media & Platform; and Experiences & Dining. The company operates TripAdvisor-branded websites, including tripadvisor.com in the United States; and localized versions of the website in 40 markets and 20 languages. It also manages and operates other travel media brands that provide users the comprehensive travel-planning and trip-taking resources in the travel industry, such as bokun.io, cruisecritic.com, flipkey.com, thefork.com, helloreco.com, holidaylettings.co.uk, holidaywatchdog.com, housetrip.com, jetsetter.com, niumba.com, seatguru.com, singleplatform.com, vacationhomerentals.com, and viator.com. In addition, the company provides information and services for consumers to research and book restaurants reservation in travel destinations; and vacation and short-term rental properties, including full home, condominiums, villas, beach properties, cabins, and cottages. As of December 31, 2020, it featured 1 billion reviews and opinions on 1 billion hotels and other accommodations, restaurants, experiences, airlines, and cruises. TripAdvisor, Inc. was founded in 2000 and is headquartered in Needham, Massachusetts.

How the Company Makes Money

TripAdvisor generates revenue through several key streams, primarily from advertising and transaction-based bookings. The company earns a substantial portion of its revenue through a cost-per-click (CPC) advertising model, where travel service providers pay for advertisements displayed on the TripAdvisor platform. Additionally, TripAdvisor earns revenue from its Instant Booking feature, which allows users to book hotels and accommodations directly through its site, earning commissions on each booking made. The company also has partnerships with various travel-related businesses, including airlines and hotel chains, enhancing its revenue through affiliate marketing and referral fees. Overall, TripAdvisor's diverse revenue model capitalizes on its vast user base and the increasing reliance on online platforms for travel planning.

TripAdvisor Financial Statement Overview

Summary

TripAdvisor shows strong revenue growth and improved profitability metrics. The balance sheet indicates reduced leverage, enhancing financial stability. Cash flow generation is robust, supporting operational flexibility. However, there is room for enhancing net profit margins and further optimizing operational efficiencies.

Income Statement

TripAdvisor's income statement shows a positive trend with consistent revenue growth, highlighted by a 12.3% increase in the TTM period. The gross profit margin remains strong at 69.2%, indicating efficient cost management. However, the net profit margin is relatively low at 4.18%, suggesting room for improvement in profitability. The EBIT and EBITDA margins have shown improvement, but they remain modest, indicating potential for operational efficiency gains.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.60 in the TTM period, showing a decrease from previous years, which indicates improved leverage management. The return on equity has improved to 10.82%, reflecting better utilization of equity. However, the equity ratio is not explicitly provided, which limits a comprehensive assessment of asset financing.

Cash Flow

Cash flow analysis reveals a significant improvement in free cash flow growth at 16.67% in the TTM period, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 0.3, suggesting that operating cash flow is adequately covering net income. The free cash flow to net income ratio is high at 0.93, demonstrating effective cash conversion from earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.89B	1.83B	1.79B	1.49B	902.00M	604.00M
Gross Profit	1.78B	1.70B	1.64B	1.38B	828.00M	549.00M
EBITDA	236.00M	218.00M	256.00M	208.00M	-29.00M	-209.00M
Net Income	79.00M	5.00M	10.00M	20.00M	-148.00M	-289.00M
Balance Sheet
Total Assets	2.85B	2.56B	2.54B	2.57B	2.29B	1.97B
Cash, Cash Equivalents and Short-Term Investments	1.22B	1.06B	1.07B	1.02B	723.00M	418.00M
Total Debt	1.26B	903.00M	912.00M	929.00M	953.00M	634.00M
Total Liabilities	2.14B	1.62B	1.67B	1.71B	1.50B	1.08B
Stockholders Equity	707.00M	943.00M	871.00M	861.00M	789.00M	886.00M
Cash Flow
Free Cash Flow	259.00M	70.00M	172.00M	344.00M	54.00M	-249.00M
Operating Cash Flow	345.00M	144.00M	235.00M	400.00M	108.00M	-194.00M
Investing Cash Flow	-87.00M	-73.00M	-63.00M	-52.00M	-54.00M	-56.00M
Financing Cash Flow	-145.00M	-63.00M	-127.00M	-27.00M	263.00M	341.00M

TripAdvisor Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.84
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TRIP, the sentiment is Negative. The current price of 14.84 is below the 20-day moving average (MA) of 15.06, below the 50-day MA of 15.89, and below the 200-day MA of 15.37, indicating a bearish trend. The MACD of -0.38 indicates Negative momentum. The RSI at 46.52 is Neutral, neither overbought nor oversold. The STOCH value of 67.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TRIP.

TripAdvisor Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EXPE	81 Outperform	$31.57B	24.65	104.40%	0.62%	7.29%	36.51%
ABNB	71 Outperform	$71.86B	27.62	30.78%	―	10.56%	47.16%
TCOM	71 Outperform	$45.61B	11.19	20.09%	0.40%	18.10%	92.84%
TRIP	67 Neutral	$1.73B	23.42	9.57%	―	4.24%	159.81%
MMYT	65 Neutral	$6.69B	105.73	16.66%	―	14.55%	-68.46%
BKNG	63 Neutral	$158.33B	31.93	―	0.74%	12.96%	3.66%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

TripAdvisor Corporate Events

Tripadvisor’s Earnings Call: Growth Amidst Challenges

Tripadvisor’s recent earnings call revealed a mixed sentiment, characterized by moderate revenue growth and strong performances in its Viator and TheFork segments. The company’s strategic initiatives and focus on experiences and AI have been pivotal in driving these successes. However, challenges in the Brand Tripadvisor segment, particularly within hotels and media, due to traffic headwinds, have somewhat dampened the overall positive momentum.

Tripadvisor’s Q3 2025 Earnings and Strategic Shift

Tripadvisor, Inc., a leading online travel company, specializes in providing travel-related content and booking services, focusing primarily on experiences and dining. The company operates in the travel and tourism industry, leveraging its vast data and AI capabilities to enhance user experiences.

Tripadvisor Announces Strategic Realignment for AI-Driven Future

On November 6, 2025, Tripadvisor announced a strategic realignment of its operating model to support its long-term goals as an experiences-led and AI-enabled company. This involves a reduction in global workforce and is expected to result in at least $85 million in annualized gross cost savings by 2027. The company also reported financial results for the third quarter of 2025, with a 4% increase in revenue year-over-year, amounting to $553 million. The realignment is part of Tripadvisor’s strategy to leverage its data and brand trust for AI-driven opportunities, aiming to transform the travel experience and enhance profitability.

The most recent analyst rating on (TRIP) stock is a Hold with a $17.00 price target. To see the full list of analyst forecasts on TripAdvisor stock, see the TRIP Stock Forecast page.