Tripadvisor (NASDAQ:TRIP) shares are up nearly 6% today after the online travel company posted robust results for the fourth quarter. Revenue jumped by 10.2% year-over-year to $390 million, outpacing estimates by about $15 million. Moreover, EPS of $0.38 exceeded expectations by a wide margin of $0.16.
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For the full year, TRIP’s top line rose by an impressive 20% to $1.8 billion. Notably, revenue in the company’s Viator and TheFork segments jumped by 49% and 22%, respectively. At the same time, a focus on efficiency and disciplined marketing spending resulted in its non-GAAP net income improving by 71% to $109 million in 2023.
Today’s price jump comes on top of a nearly 15% rise in TRIP’s share price over the past five sessions. This euphoria is a result of TRIP forming a special committee of its board members to review potential proposals and alternatives. Notably, Liberty Tripadvisor Holding, which already owns 21.1% of TRP, has expressed interest in acquiring the latter.
Is TRIP a Good Stock to Buy?
Overall, the Street has a Hold consensus rating on Tripadvisor, and the average TRIP price target of $22.91 points to a potential downside of 9.5% in the stock. The company’s share price has climbed nearly 69% over the past six months.
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