Tripadvisor Inc

TRIP: XNAS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$46.00	Znjqs	Nndqqjjcm

Tripadvisor Earnings: Intense Competition Still Negatively Affecting Financial and Share Performance

Dan Wasiolek

Aug 7, 2024

No-moat Tripadvisor’s shares fell 12% in after-hours trading on Aug. 6 as results in its metasearch hotel business continued to lag the performance of the US hotel industry meaningfully amid lasting competition from wide-moat Alphabet’s Google. Having largely accounted for this systematic pressure, we only plan to reduce our $20 fair value estimate by $0.50-$1.00 per share to account for near-term demand softness in the travel industry, as well as some incremental marketing expense needed in an intensely competitive market. Shares are undervalued, but we don’t expect headwinds facing the company to ease for the foreseeable future.

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