Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 16 Oct, 25 | TRIP | Buy | USD 15.85 | USD 16.6 | USD 17.4 | 5 days | Closed |
12.43%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
TripAdvisor, Inc. operates as an online travel company, primarily engages in the provision of travel guidance products and services worldwide. The company operates in three segments: Brand Tripadvisor, Viator, and TheFork. The Brand Tripadvisor segment offers travel guidance platforms for travelers to discover, generate, and share authentic user-generated content in the form of ratings and reviews for destinations, points-of-interest, experiences, accommodations, restaurants, and cruises. The Viator's segment provides pure-play experiences online travel agency that comprehensive and connecting travelers to discover and book tours, activities, and attractions from experience operators. TheFork segment provides an online marketplace that enables diners to discover and book online reservations at restaurants. TripAdvisor, Inc. was founded in 2000 and is headquartered in Needham, Massachusetts. Tripadvisor, Inc. is a subsidiary of Liberty TripAdvisor Holdings, Inc.
Significant Profitability Improvement at Viator: Viator’s adjusted EBITDA surged from USD 10 million in Q2 FY24 to USD 32 million in Q2 FY25, representing 230% growth year-over-year
Exceptional Free Cash Flow Expansion: Tripadvisor’s free cash flow rose from USD 37 million in Q2 FY2024 to USD 177 million in Q2 FY2025, marking a 372% increase
Weakness in Media and Advertising Revenue: Media and advertising revenue within Brand Tripadvisor dropped from USD 41 million in Q2 FY24 to USD 36 million in Q2 FY25, a 13% decline year-over-year
Margin Contraction in Brand Tripadvisor: Adjusted EBITDA for Brand Tripadvisor declined from USD 84 million in Q2 FY24 to USD 66 million in Q2 FY25, representing a 21% y-o-y decrease
Tripadvisor’s key investment risk lies in the structural decline of its legacy Brand Tripadvisor revenue streams and increasing dependence on paid channels, which may constrain long-term margin expansion despite strong growth in its marketplace businesses Viator and TheFork
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 15.85 | 14.2 | 16.6 | 17.4 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Financial Overview: Tripadvisor, Inc. reported consolidated revenue of USD 529 million for the second quarter of fiscal year 2025, representing a 7% increase compared to USD 497 million in the same period last year. Adjusted EBITDA grew 11% year-over-year to USD 107 million, equivalent to 20% of total revenue, supported by improved marketing efficiencies and margin expansion in Viator. GAAP net income rose sharply by 49% to USD 36 million, and non-GAAP net income improved 5% to USD 60 million, indicating continued underlying profitability. Free cash flow strengthened to USD 177 million, a substantial improvement over the prior year’s USD 37 million.
Segment Performance: Across segments, Tripadvisor continued its strategic transformation toward its growth marketplaces — Viator and TheFork — while managing revenue headwinds in Brand Tripadvisor. Viator, the company’s leading experiences platform, delivered 11% revenue growth to USD 270 million, and adjusted EBITDA surged 230% to USD 32 million, reflecting operational efficiency and higher repeat bookings. TheFork, Tripadvisor’s European dining marketplace, achieved 28% year-over-year revenue growth to USD 54 million and a 184% increase in adjusted EBITDA to USD 9 million, driven by expanding B2B subscriptions and disciplined cost management. In contrast, Brand Tripadvisor posted a 3% decline in revenue to USD 242 million, as lower advertising demand and declining legacy traffic offset modest growth in branded hotels.
Operational Efficiency and Cost Management: Total costs and expenses increased only 2% year-over-year to USD 470 million, reflecting disciplined cost control and a focus on efficiency. Personnel expenses decreased 3% to USD 149 million, supported by restructuring and productivity initiatives. General and administrative costs were reduced sharply by 37% to USD 13 million, following lower legal and regulatory expenses. Marketing costs rose moderately to USD 218 million, in line with the company’s strategy to prioritize high-return paid channels, while technology investments increased 12% to USD 25 million as Tripadvisor continued integrating artificial intelligence (AI) capabilities into its products and platforms.
Strategic Transformation and AI Integration: Tripadvisor’s ongoing transformation to an engagement-led, experience-driven model gained momentum during the quarter. The company emphasized its dual-brand strategy across Viator and Brand Tripadvisor to capture synergies in product development, marketing, and customer engagement. AI adoption remained central to this shift, powering smarter search, personalized recommendations, and operational automation. Viator’s use of AI to optimize search relevance and conversion, coupled with TheFork’s conversational AI trials for restaurant discovery, underscored Tripadvisor’s commitment to innovation and scale efficiency.
Cash Position and Capital Allocation: Tripadvisor ended Q2 FY2025 with a strong cash position of USD 1.2 billion, up USD 148 million from December 2024, signaling improved liquidity and operating strength. The company repurchased 2.8 million shares worth USD 40 million at an average price of USD 14.22 per share, while maintaining USD 160 million available for future buybacks. Free cash flow growth of more than 370% reflected better profitability, tight working capital management, and the absence of one-time tax outflows seen in the prior year.
Outlook and Strategic Priorities: Looking ahead, management reaffirmed guidance for 4–6% revenue growth and 19–21% adjusted EBITDA margins for the third quarter of FY2025. Tripadvisor plans to strengthen integration between its marketplace segments and leverage AI-driven insights to improve monetization. The company expects sustained growth in experiences and dining, balanced by a continued but managed decline in legacy media and hotel advertising revenue.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given on TripAdvisor, Inc (NASDAQ: TRIP) at the closing market price of USD 15.85, as on Oct 15, 2025.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Consumer Cyclical Industry: Travel Services
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| TRIP TripAdvisor Inc |
-0.78 5.86% | 12.53 | 112.00 | 16.10 | 2.06 | 4.23 | 1.98 | 13.80 |
| BKNG Booking Holdings Inc |
-472.26 9.22% | 4649.99 | 35.09 | 24.51 | 7.44 | 34.95 | 7.43 | 21.81 |
| ABNB Airbnb Inc |
-9.36 7.13% | 121.95 | 47.66 | 29.85 | 7.91 | 10.08 | 7.06 | 32.53 |
| TCOM Trip.com Group Ltd ADR |
-1.565 2.52% | 60.45 | 23.73 | 16.29 | 0.91 | 2.30 | 5.84 | 18.29 |
| CCL Carnival Corporation |
-0.475 1.46% | 31.98 | 21.70 | 15.65 | 1.39 | 4.15 | 2.63 | 10.93 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels as on October 16, 2025. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned has been achieved and is subject to the factors discussed above.
Note 4: StockNextt reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
Disclaimer :
This report has been issued by StockNextt which has an Ontario Business Identification Number 1000958347 and British Columbia registration Number FM1051529 is a trade name under Kalkine Canada Advisory Services Inc. having Business Number 761925130BC0001. Kalkine Canada Advisory Services Inc. and StockNextt are collectively referred to as “StockNextt”, “we”, “us”, and “our”. The website https://stocknextt.com and associated pages are published by StockNextt. The information in this report and on the StockNextt website has been prepared from a wide variety of sources, which StockNextt, to the best of its knowledge and belief, considers accurate. StcokNextt has made every effort to ensure the reliability of information contained in its reports, newsletters, and websites. All information represents our views at the date of publication and may change without notice. The information in this report does not constitute an offer to sell securities or other financial products or a solicitation of an offer to buy securities or other financial products. Our reports contain general recommendations for investing in securities and other financial products. StockNextt does not offer financial advice based upon your personal financial situation or goals, and we shall not be held liable for any investment or trading losses you may incur by using the opinions expressed in our reports, publications, market updates, news alerts and corporate profiles. StockNextt does not intend to exclude any liability which it is not permitted to exclude under applicable law or regulation. StockNextt’s general advice does not in any way endorse or recommend individuals, investment products or services for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a professional authorised financial planner and adviser. You should be aware that the value of any investment and the income from it can go down as well as up and you may not get back the amount invested. Please also read our Terms and conditions for further information. Employees and/or associates of StockNextt and its related entities may hold an interest in the securities or other financial products covered in this report or on the StockNextt website. Any such employees and associates are required to comply with certain safeguards, procedures and disclosures as required by law.
Copyright © 2026 Krish Capital Pty Ltd. All rights reserved. No part of this website, or its content, may be reproduced in any form without our prior consent.
