TripAdvisor shares rallied for a second straight day on Thursday after activist investor Starboard Value was reported to have taken a more than 9% stake in the company, worth about $160 million.
The news, first reported by The Wall Street Journal, sent TripAdvisor stock more than 5% higher in premarket trading, adding to an 8.1% surge on Wednesday.
The move has reignited investor interest in a company that has seen its core brand falter and faced repeated takeover interest over the past year.
Neither TripAdvisor nor Starboard commented publicly on the stake, which may soon be detailed in a 13D filing—typically a precursor to activist engagement.
Despite the recent rally, TripAdvisor shares remain down about 15% over the past 12 months.
The company has a market capitalization of roughly $1.8 billion and trades near $14, well below the $27 level it hit in February 2024 after announcing a special committee to explore strategic alternatives.
Growth shifts from core brand to newer units
TripAdvisor has faced a tough stretch, with its flagship hotel and travel review platform under pressure.
In 2024, revenue from the main TripAdvisor brand fell 8%, while adjusted earnings dropped 14%.
By contrast, Viator, its experiences marketplace, and TheFork, its restaurant reservation platform, delivered double-digit growth.
Viator is now on track to overtake the TripAdvisor brand in revenue, a sign that the company’s future may lie outside its legacy business.
Yet, these gains have not fully offset investor concerns over slowing growth, intensifying competition, and a lack of clear strategic direction.
The company has rejected several takeover offers in the past year, according to disclosures made during its late-2024 decision to buy out Liberty Tripadvisor Holdings for $435 million and eliminate its dual-class share structure.
Offers ranged from $18 to $30 per share.
What Starboard might do with TripAdvisor
Starboard has a long history of pushing operational overhauls at consumer-facing companies, including Campbell Soup, Hilton, and more recently, Autodesk and Kenvue.
According to AInvest, if Starboard follows its typical activist playbook, it could push TripAdvisor to cut costs in non-core areas of its business, particularly within its flagship brand, which now accounts for less than half of the company’s total revenue.
Another likely area of focus would be monetizing TripAdvisor’s vast repository of user-generated travel data, potentially through partnerships with AI platforms or licensing agreements that could create new revenue streams, AInvest said.
Starboard may also advocate for strategic divestments—such as selling or spinning off TheFork, TripAdvisor’s restaurant reservation platform—to free up capital for reinvestment in faster-growing units like Viator.
Leadership changes are also a possibility, with the activist firm often seeking to reshape boards or apply pressure for more aggressive execution of strategy.
While CEO Matt Goldberg has been steering the company toward the high-growth experiences segment, TripAdvisor’s underwhelming stock performance suggests that shareholders are expecting more decisive action and quicker results.
TripAdvisor stock presents valuation appeal but competitive pressures remain
The broader travel sector has seen a choppy 2025.
Early-year macro uncertainty linked to President Donald Trump’s renewed tariffs policy hit sentiment, but travel stocks rebounded in April.
TripAdvisor is now up 1.5% for the year, outperforming Expedia, which is down 8%.
TripAdvisor trades at around 4x EV/EBITDA, a steep discount to peers like Expedia, which trades at 7x.
“For investors, TripAdvisor represents a classic “value with catalyst” opportunity. The stock trades at a ~4x EV/EBITDA multiple, far below peers like Expedia (7x). If Starboard can deliver even half of its potential value-creation levers, upside could be significant,” AInvest said.
However, it said that the core TripAdvisor brand’s decline could accelerate if younger travellers shift entirely to platforms like Google Travel or Instagram.
Additionally, macroeconomic pressures—such as a potential recession dampening discretionary travel spending—could test margins, it said.
Here’s how to play the TripAdvisor stock
Investors considering TripAdvisor have a few strategic options depending on their risk tolerance and outlook.
Those looking to buy may consider accumulating shares if the stock dips below $14.50, aiming for a potential upside toward the $17–$18 range suggested by recent takeover discussions, AInvest said.
For those already holding the stock, it may be prudent to wait until the company reports its third-quarter earnings, which could provide clearer signals on whether cost-cutting measures and Viator’s growth trajectory are gaining traction.
On the other hand, investors may want to steer clear if signs emerge that Starboard’s influence is diminishing or if the decline of Tripadvisor’s core brand accelerates, signalling deeper structural issues that could weigh on long-term performance, it said.
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