TripAdvisor-Up 26% Already This Year, What Is Next For Tripadvisor Stock?

Core Insights - Tripadvisor's stock has experienced a 26% growth since the beginning of 2024, currently priced around $27 per share, but is considered fairly priced and may face pressure in the short to medium term [1] - The company has seen a significant increase in stock price from approximately$ 21 to $27 year-to-date, outperforming the S&P 500, which grew by 8% during the same period [1] - Liberty Tripadvisor Holdings, owning 21.1% of Tripadvisor's shares, is exploring potential acquisition discussions, which has positively impacted the stock price [1] - Despite high gross margins consistently above 90%, Tripadvisor has struggled with profitability due to high spending on sales and marketing [1] Financial Performance - Tripadvisor's total revenue for fiscal 2023 reached an all-time high of$ 1.8 billion, reflecting a 20% annual growth, while net income was $10 million, down 42% year-over-year [2] - The company's Q4 revenues increased by 10% year-over-year to$ 390 million, with an adjusted Q4 EBITDA of $84 million, representing 22% of revenue [2] - Viator, a platform for bookable experiences, now contributes 40% of total revenues, with its revenues growing nearly 50% year-over-year to$ 737 million in FY 2023 [2] Valuation and Forecast - Tripadvisor's valuation has been revised to $26 per share, based on an expected EPS of$ 1.07 and a P/E multiple of 23.9x for fiscal year 2024, which is nearly 4% lower than the current market price [3] - Revenue forecasts for Tripadvisor are projected to reach nearly $2 billion for fiscal year 2024, indicating a 10% year-over-year growth [3]