Tripadvisor (TRIP) is at a fascinating crossroads, and savvy investors should be paying close attention. This travel giant, with a market cap of around $2.36 billion and a share price near $18, operates three distinct yet complementary segments: the flagship Tripadvisor platform, Viator, and TheFork. Together, these platforms create a powerful ecosystem connecting travelers with experiences, accommodations, and dining across the globe. But despite this robust portfolio, Tripadvisor’s stock trades at a steep discount compared to peers—hovering around seven times EBITDA versus low to mid-teens for competitors.
Here’s the kicker: Tripadvisor’s valuation disconnect is not just about numbers; it’s deeply rooted in its corporate governance history and the evolving dynamics of its business segments. Until recently, Liberty Media Corp’s controlling stake and a dual-class share structure hampered investor confidence. That changed in April 2025 when Tripadvisor bought back Liberty’s controlling position and eliminated the dual-class structure. While the stock has rallied since, remnants of past governance issues still weigh on the share price.
The business fundamentals tell a more nuanced story. Tripadvisor’s core platform saw revenue decline nearly 8% from 2023 to 2024, which has understandably rattled investors. But Viator, the tours and experiences marketplace, is growing at double-digit rates, matching Tripadvisor’s revenue at about $900 million this year. TheFork, the European restaurant reservation platform, is also expanding rapidly, with over $200 million in revenue and an EBITDA margin poised to surpass 20% at scale. This trio of market leaders collectively generates over $2 billion in revenue and approximately $315 million in EBITDA, yet the market struggles to price in this growth and margin potential.
Enter Starboard Value, a heavyweight activist investor known for unlocking value through operational efficiency and strategic focus. With a 9.01% stake acquired at an average cost of $13.92, Starboard brings a proven track record—its campaigns have historically delivered a 22.34% average return, outperforming the Russell 2000 by a wide margin. Starboard’s involvement signals serious potential for value creation, whether through driving revenue growth, enhancing margins, or even exploring strategic asset sales.
What makes Starboard’s engagement particularly compelling is the multiple levers available. While the status quo—letting the business segments grow and margins expand—could itself unlock significant shareholder value, Starboard’s expertise suggests more aggressive options. For example, TheFork, which accounts for just 10% of revenue but 5% of EBITDA, could be a prime candidate for a strategic sale. Historical deals in the online dining reservation space, like Resy’s acquisition by Amex or OpenTable’s sale to Priceline (now Booking Holdings), have commanded mid- to high-single-digit revenue multiples. A modest five-times revenue multiple could value TheFork at around $1 billion—roughly 40% of Tripadvisor’s current enterprise value—highlighting a clear path to unlocking hidden value.
Another underappreciated angle is Tripadvisor’s treasure trove of data. With 300 million monthly unique visitors and over a billion reviews, the company holds a unique dataset that could be a goldmine for artificial intelligence applications. Partnerships with AI leaders like OpenAI and Perplexity hint at untapped potential, though details remain under wraps. Investors should watch closely for how Tripadvisor leverages AI to enhance user experience, personalize travel recommendations, or even monetize its data assets.
Looking ahead, what should investors and advisors do differently? First, recognize that Tripadvisor is no longer a single-segment travel review site but a diversified digital travel ecosystem with strong growth engines. This calls for a nuanced valuation approach—one that values each segment on its own merits and growth trajectory rather than applying a blunt multiple to the whole.
Second, monitor Starboard’s next moves closely. While a proxy fight seems unlikely given the alignment with current management, Starboard’s involvement often accelerates strategic clarity and operational improvements. Advisors should consider Tripadvisor as a potential turnaround and growth story with activist backing—a combination that has historically led to outsized returns.
Lastly, keep an eye on potential M&A activity. Tripadvisor has already attracted acquisition interest, with bids in the $18 to $19 per share range emerging as recently as early 2025. With improved governance and better-than-expected quarterly results, the company’s attractiveness to strategic buyers is only increasing. Investors should be ready for possible premium offers or asset sales that could unlock immediate value.
In sum, Tripadvisor exemplifies a classic undervalued tech-enabled travel play, ripe for transformation under activist stewardship. For those willing to look beyond headline revenue declines and governance baggage, the company offers a compelling blend of growth, margin expansion, and strategic optionality. As the travel industry rebounds and digital experiences become ever more central, Tripadvisor’s next chapter could be one of significant shareholder value creation.
Sources:
– Ken Squire, 13D Monitor and 13D Activist Fund
– CNBC Market Data on Tripadvisor
– Historical M&A data from PitchBook and industry reports on online dining reservation deals
Actionable Insight: Investors should consider initiating or adding to positions in Tripadvisor ahead of anticipated operational improvements and potential strategic moves. Advisors might recommend monitoring activist filings and quarterly earnings closely, as Starboard’s involvement often precedes meaningful corporate developments that can drive stock appreciation.
Source: Starboard takes a stake in Tripadvisor. How the activist may bolster value