The Take Over, The Break's Over - Sell Tripadvisor

2025-01-30 07:55:44 ET

Summary

• I'm downgrading Tripadvisor to a sell after the stock price almost nearly fulfilled the buyout premium and considering the higher risk profile if the deal doesn't go through.
• Liberty Media's majority vote and ongoing securities fraud investigation add risk to the takeover deal, making the stock less attractive to jump into at $17.90.
• Viator is Tripadvisor's growth engine, but it alone won't support outperformance, in my opinion, especially with strong competitors in the travel industry.
• Analysts show little positive sentiment, with a majority holding or selling, and I share that bearish sentiment.
• I share hereon my thoughts on Tripadvisor and why I see limited upside for the near term.

Those of you who got in early on Tripadvisor ( TRIP ), congrats on the gains, but perhaps the trip is over – at least for now. I initiated TripAdvisor with a buyback in early August, expecting more upside in FY24 based on my belief that the summer seasonality will boost Brand Tripadvisor and Viator sales in Q2 and Q3, plus the potential resurfacing of a takeover....

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