TLDR
- Starboard Value acquired a 9% stake (10.6 million shares) in Tripadvisor, calling the stock “undervalued”
- Tripadvisor shares jumped 12-17% on Thursday following the activist investor’s disclosure
- Starboard plans to engage with management on “value creation opportunities” including potential operational changes
- The travel platform previously rejected multiple takeover offers with some bids reaching $30 per share
- Bernstein maintains a “Buy” rating with $20 price target, while Wall Street consensus remains “Hold”
Tripadvisor stock soared Thursday after activist investor Starboard Value disclosed a major stake in the travel platform. The move signals potential changes ahead for the company that has struggled in recent years.
Exclusive: Activist investor Starboard Value has built an over 9% stake in Tripadvisor after the online travel-review company eschewed takeover offers in the past year https://t.co/tRegEVcLdK
— The Wall Street Journal (@WSJ) July 2, 2025
Starboard Value now owns approximately 10.6 million shares of Tripadvisor. This represents a 9% stake worth around $160 million in the travel review company.
The activist investor called Tripadvisor shares “undervalued” in its regulatory filing. Starboard described the investment as “an attractive investment opportunity” at current price levels.
Tripadvisor shares closed nearly 17% higher on Thursday following the news. The stock had been down about 6% from its February highs before the rally.
Starboard said it plans to engage with Tripadvisor’s management and board. The firm wants to discuss “opportunities for value creation” with company leadership.
The activist investor outlined several potential changes it might pursue. These include recommendations on capitalization, ownership structure, and board composition changes.
Starboard also mentioned potential business combinations or dispositions. The firm could suggest ways to improve Tripadvisor’s financial and operational performance.
Tripadvisor’s Recent Challenges
Tripadvisor has faced headwinds in recent years. The company’s stock plummeted during the COVID-19 pandemic as travel demand collapsed.
While shares recovered in 2021, they have declined steadily since then. Revenue from the flagship Tripadvisor brand has been sliding over this period.
The company’s subsidiaries Viator and TheFork have shown growth. However, this hasn’t offset the decline in the main brand’s performance.
Tripadvisor rejected several takeover offers in the past year according to reports. Some bids reportedly reached as high as $30 per share.
The company completed a merger with Liberty Tripadvisor Holding in 2024. This transaction removed a complex dual-share structure that had complicated governance.
Analyst Views on the Stock
Bernstein analysts remain bullish on Tripadvisor despite recent struggles. The firm cited “undervaluation” as a key reason to buy the stock in late June.
Bernstein maintains a “Buy” rating with a $20 price target. This suggests potential upside of about 15% from current levels.
The investment firm believes the Liberty merger made Tripadvisor more attractive to institutional investors. The simplified structure could also appeal to potential acquirers.
Starboard’s involvement could accelerate improvements at the company. The activist firm typically pushes for operational improvements and cost discipline.
The presence of Starboard might help Tripadvisor’s flagship brand recover lost ground. Revenue for the main brand declined 8% last year.
Starboard could also help monetize the company’s faster-growing units. Viator and TheFork represent potential value creation opportunities.
Wall Street consensus remains more cautious on the stock. The average rating sits at “Hold” with a mean price target of about $17.
This target price suggests potential downside of roughly 3% from current levels. Other analysts are less optimistic than Bernstein about the stock’s prospects.
Tripadvisor stock was marginally higher year-to-date before Thursday’s surge. The company continues to work on improving performance across its various brands.
Stay Ahead of the Market with Benzinga Pro!
Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders:
- Breaking market-moving stories before they hit mainstream media
- Live audio squawk for hands-free market updates
- Advanced stock scanner to spot promising trades
- Expert trade ideas and on-demand support
