TRIP Should I Buy
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Tripadvisor Inc (TRIP) is not a strong buy at the moment for a beginner investor with a long-term strategy. While there are some positive catalysts such as hedge fund buying and improved financial performance, the technical indicators are mixed, and the analyst sentiment remains neutral to negative with significant price target reductions. The lack of strong proprietary trading signals and no recent congress trading data further supports a cautious approach.
The MACD is positive and expanding, indicating bullish momentum, but RSI is neutral, and the moving averages are bearish (SMA_200 > SMA_20 > SMA_5). The stock is trading near its pivot level of 10.292, with resistance at 10.853 and support at 9.73. Overall, the technical indicators suggest a mixed trend.
Hedge funds are significantly increasing their positions in TRIP, with a 131.87% increase in buying over the last quarter. News of OpenAI's decision to pause direct travel bookings has boosted confidence in online travel agencies, including Tripadvisor. The company's Q3 2025 financials show strong growth in revenue, net income, EPS, and gross margin.
Analyst sentiment is largely neutral to negative, with multiple firms lowering price targets and expressing concerns about structural challenges in Tripadvisor's core business. The stock faces ongoing headwinds in its Hotel & Other segment and uncertainty around narrowing the gap with competitors like GetYourGuide. Additionally, the potential proxy fight with activist Starboard Value could create near-term distractions.
In Q3 2025, Tripadvisor reported a 3.95% YoY increase in revenue to $553 million, a 35.90% YoY increase in net income to $53 million, and a 59.26% YoY increase in EPS to 0.43. Gross margin improved slightly to 88.34%, up 1.28% YoY, reflecting solid financial performance.
Analyst sentiment is neutral to negative, with multiple firms lowering price targets significantly. The current price targets range from $10 to $16, with most analysts maintaining Neutral or Underweight ratings. Concerns include ongoing secular pressures in the Hotel & Other segment, mixed Q4 results, and distractions from a potential proxy fight with activist investors.
