Tripadvisor stock hits 52-week low at $12.57 amid challenges

Tripadvisor (NASDAQ:TRIP) Inc. shares have tumbled to a 52-week low, with the stock price touching down at $12.57, marking a steep 7.85% decline just this week. The travel platform, known for its user-generated reviews and booking resources, has faced a tumultuous market, reflecting a broader downturn in the travel sector. According to InvestingPro analysis, the company maintains strong fundamentals with a current ratio of 2.1, indicating solid liquidity. Over the past year, Tripadvisor’s stock has seen a significant decline, with a 1-year change showing a sharp decrease of 52.03%. This downturn highlights the ongoing challenges within the travel industry, which has been grappling with a slow recovery post-pandemic and changing consumer behavior. Despite the price decline, InvestingPro analysis suggests the stock is currently undervalued, with analysts setting price targets up to $24. Technical indicators also suggest the stock is in oversold territory, one of several key insights available in the comprehensive Pro Research Report covering TRIP and 1,400+ other top stocks.

In other recent news, Tripadvisor has announced a significant leadership reorganization for its Viator unit, appointing Pepijn Rijvers as President and Kristin Dorsett as Chief Operating Officer, effective April 1, 2025. This move is part of Tripadvisor Group’s strategy to focus on the experiences sector, with Viator showing strong growth and profitability, reporting $840 million in revenue for 2024. Meanwhile, Moody’s Ratings has downgraded Tripadvisor’s Senior Secured First Lien Term Loan B facility from Ba2 to Ba3, adjusting the outlook to stable due to lower projected profitability and free cash flows. The downgrade is linked to Tripadvisor raising an additional $350 million in debt to repay its convertible notes due in 2026.

Analyst firms have also been adjusting their outlooks on Tripadvisor. Mizuho (NYSE:MFG) Securities has raised its price target for Tripadvisor stock to $20, maintaining a Neutral rating, citing sustainable improvement in the company’s Viator and restaurant reservation businesses. Bernstein SocGen Group maintained an Outperform rating with a $21 price target, highlighting double-digit EBITDA growth in Viator and The Fork as promising signs for the company’s future. Conversely, Cantor Fitzgerald reduced its price target to $13, maintaining an Underweight rating, following Tripadvisor’s mixed fourth-quarter earnings report.

Tripadvisor’s Brand TRIP segment saw a 6% year-over-year revenue decline in the fourth quarter, though Viator’s revenues increased by approximately 16% year-over-year. The company has provided guidance for the first quarter, expecting revenues to be flat or show a slight decline, with EBITDA margins projected between 5-7%. Despite challenges, Tripadvisor’s credit profile is supported by its liquidity and financial policy, with Moody’s noting the potential completion of a merger with Liberty TripAdvisor Holdings (OTC:LTRPA).

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.