TripAdvisor (TRIP) Stock Forecast & Price Target

Tripadvisor's financial outlook is bolstered by its strong revenue diversification, with 52% of its total revenue derived from its core Brand Tripadvisor segment, supported by advertising on its extensive metasearch platform. Viator, the company's experiences brand, has demonstrated significant growth, recording approximately $840 million in gross booking value, representing a 17% year-over-year increase, and is expected to become the largest revenue contributor by 2025. Additionally, the drastic 80% year-over-year increase in bookings volume through Viator's mobile app highlights the platform's expanding user engagement and market potential.

Tripadvisor's financial outlook for 1Q25 indicates a concerning trend, with net revenue projected to be flat to down low single-digits year-over-year, contrasting sharply with prior consensus expectations of modest growth. The company's core Brand Tripadvisor segment is expected to experience low double-digit year-over-year revenue declines, coupled with a significant projected decline in adjusted EBITDA margins of approximately 1,000 basis points, highlighting potential profitability challenges. Furthermore, the overall EBITDA margin for FY25 is anticipated to decline year-over-year, indicating a lack of operational leverage in the core business going forward.