Tripadvisor Stock Intrinsic Value – Cantor Fitzgerald Downgrades TripAdvisor Rating to Underweight in Latest Research Note

September 20, 2024

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TRIPADVISOR ($NASDAQ:TRIP): Cantor Fitzgerald, a leading investment banking and financial services firm, recently released a research note on September 05, 2024, regarding the stock of TripAdvisor Inc. TRIP. TripAdvisor is a well-known online travel company that provides reviews and recommendations for hotels, restaurants, and other travel-related services. The company has been a popular choice for travelers worldwide, but recent events have led to a downgrade in its rating by Cantor Fitzgerald. In their research note, Cantor Fitzgerald assigned an Underweight rating to TripAdvisor, indicating that they believe the stock is expected to underperform in the market. This change in rating comes after a series of negative events that have impacted the company’s stock value. Furthermore, Cantor Fitzgerald noted that TripAdvisor’s business model may not be sustainable in the long run. With the rise of alternative travel review platforms and changes in user behavior, the company’s revenue stream may face challenges in the future. This, combined with the impact of the pandemic on the travel industry, has led to a pessimistic outlook on the company’s stock. It is essential to note that Cantor Fitzgerald’s research note is based on their analysis and observations and should not be considered as a definitive prediction of TripAdvisor’s performance.

However, it serves as a warning for potential investors to conduct thorough research before investing in the company’s stock. In conclusion, Cantor Fitzgerald’s downgrade of TripAdvisor’s rating to Underweight reflects the current challenges and uncertainties faced by the company. It is a reminder for investors to carefully consider all factors before making any investment decisions. As for TripAdvisor, it remains to be seen how the company will navigate through these obstacles and regain its position in the market.

Share Price

This decision was based on their analysis of the company’s current stock performance and future growth potential. On Thursday, TRIPADVISOR‘s stock opened at $14.43 and closed at $14.55, showing a 3.49% increase from the previous closing price of $14.06.

However, despite this positive movement, Cantor Fitzgerald has deemed the stock to be underperforming. The downgrade in rating suggests that TRIPADVISOR’s stock is expected to underperform in comparison to the overall market. This could be attributed to various factors such as declining revenue growth, increased competition, and changes in consumer behavior. TRIPADVISOR operates in the highly competitive online travel industry, and as more players enter the market, it becomes increasingly challenging for the company to maintain its dominant position. Moreover, Cantor Fitzgerald’s research note also highlights concerns about TRIPADVISOR’s future growth potential. While the company has been successful in providing a platform for travelers to plan and book their trips, there are concerns about its ability to adapt to changing consumer preferences. With the rise of alternative accommodation options such as Airbnb, traditional hotel bookings through TRIPADVISOR may see a decline in the future. With travel restrictions and lockdowns in place, TRIPADVISOR’s revenue has taken a hit as people are not able to travel as freely as before. As a result, the company’s financials have been affected, and it may take a longer time for it to recover from the impact of the pandemic. In conclusion, Cantor Fitzgerald’s downgrade of TRIPADVISOR’s rating to “underweight” suggests that the company may face challenges in the future and may not perform as well as its competitors in the market. While the stock may have shown a slight increase in price recently, the overall outlook for TRIPADVISOR is not as positive. Investors and stakeholders should carefully consider this research note before making any investment decisions related to TRIPADVISOR’s stock. Live Quote…

About the Company

  • TripAdvisor_Rating_to_Underweight_in_Latest_Research_Note”>Industry Classification
  • Key Executives
  • Ownership (Institutional/ Fund Holdings)
  • News Feed
  • Income Snapshot

    Below shows the total revenue, net income and net margin for Tripadvisor. TripAdvisor_Rating_to_Underweight_in_Latest_Research_Note”>More…

    Total Revenues Net Income Net Margin
    1.79k 10 1.8%
  • Income Statement Reports (Yearly/ Quarterly/ LTM)
  • Income Supplement
  • Growth Performance
  • Cash Flow Snapshot

    Below shows the cash from operations, investing and financing for Tripadvisor. TripAdvisor_Rating_to_Underweight_in_Latest_Research_Note”>More…

    Operations Investing Financing
    235 -63 -127
  • Cash Flow Statement (Yearly/ Quarterly/ LTM)
  • Cash Flow Supplement
  • Balance Sheet Snapshot

    Below shows the total assets, liabilities and book value per share for Tripadvisor. TripAdvisor_Rating_to_Underweight_in_Latest_Research_Note”>More…

    Total Assets Total Liabilities Book Value Per Share
    2.54k 1.67k 6.33
  • Balance Sheet (Yearly/ Quarterly)
  • Balance Sheet Supplement
  • Key Ratios Snapshot

    Some of the financial key ratios for Tripadvisor are shown below. TripAdvisor_Rating_to_Underweight_in_Latest_Research_Note”>More…

    3Y Rev Growth 3Y Operating Profit Growth Operating Margin
    43.6% -18.6% 9.5%
    FCF Margin ROE ROA
    9.6% 12.5% 4.2%
  • Income Statement Ratios
  • Balance Sheet Ratios
  • Cash Flow Ratios
  • Valuation Ratios
  • Other Ratios
  • Other Supplementary Items
  • Analysis – Tripadvisor Stock Intrinsic Value

    As an investment research company, our team at GoodWhale has thoroughly analyzed the fundamentals of TRIPADVISOR. We have taken into account various factors such as the company’s financial performance, market trends, and industry outlook. Based on our findings, we have calculated the intrinsic value of TRIPADVISOR’s share to be around $42.3. This is determined by our proprietary Valuation Line, which takes into consideration the company’s earnings, growth potential, and other financial metrics. Currently, TRIPADVISOR’s stock is trading at $14.55, significantly lower than its intrinsic value. This means that the stock is undervalued by 65.6%, presenting a potential opportunity for investors. We believe that TRIPADVISOR has strong potential for growth in the future. With the increasing popularity of travel and tourism, the demand for online travel services is also expected to rise. As a leading player in the online travel industry, TRIPADVISOR is well-positioned to capitalize on this trend. Additionally, TRIPADVISOR has a strong brand reputation and a wide network of users and partners. This gives the company a competitive edge in the market and provides a solid foundation for future growth. In conclusion, our analysis shows that TRIPADVISOR’s stock is currently undervalued and has strong potential for growth. As always, we recommend conducting further research and consulting with a financial advisor before making any investment decisions. More…

  • Star Chart Analysis
  • Valuation Analysis




  • Peers

    TripAdvisor, Inc. is an online travel research company that operates a global platform with user-generated reviews and other content, and a comparison shopping website. The company operates in 45 countries and is headquartered in Needham, Massachusetts. TripAdvisor was founded in 2000 by Stephen Kaufer, Langley Steinert, and Jason Freedman, and was acquired by IAC/InterActiveCorp in 2004. Expedia Group is an American online travel shopping company for consumer and business travel. Its websites, which are primarily travel fare aggregators and travel metasearch engines, include Expedia.com, Hotels.com, trivago, Travelocity, Orbitz, and HomeAway. Expedia Group is headquartered in Bellevue, Washington, and employs over 24,000 people globally. Sabre Corporation is a travel technology company based in Southlake, Texas. The company provides software and distribution solutions that enable airlines and other travel providers to manage operations, market, and sell products and services. Sabre also offers a suite of software solutions for travel agencies, corporations, and travelers. Booking Holdings Inc. is an online travel company that owns and operates a portfolio of travel brands, including Booking.com, KAYAK, agoda, Cheapflights, and Rentalcars.com. The company offers a variety of travel services, including hotel reservations, car rentals, and flights. Booking Holdings is headquartered in Norwalk, Connecticut, and employs over 17,000 people globally.

    – Expedia Group Inc ($NASDAQ:EXPE)

    Expedia Group Inc is a publicly traded company with a market capitalization of $16.04 billion as of 2022. The company’s return on equity is 33.72%. Expedia Group is a global online travel company that operates a number of travel-related brands, including Expedia, Hotels.com, trivago, and HomeAway. The company offers a wide variety of travel products and services, including flights, hotels, car rentals, cruises, and vacation packages. Expedia Group is headquartered in Bellevue, Washington.

    – Sabre Corp ($NASDAQ:SABR)

    Sabre Corporation is a travel technology company based in Southlake, Texas. The company provides software and services to airlines and travel agencies, including reservation, distribution, and e-commerce systems. Sabre also operates a global travel marketplace, which offers a range of travel products and services.

    Sabre’s market cap is $1.8 billion as of 2022. The company has a return on equity of 18.38%. Sabre provides software and services to airlines and travel agencies, including reservation, distribution, and e-commerce systems. The company also operates a global travel marketplace, which offers a range of travel products and services.

    – Booking Holdings Inc ($NASDAQ:BKNG)

    Booking Holdings is a global leader in online travel and related services, with a mission to make it easy for everyone to experience the world. The company operates a portfolio of leading online travel brands, including Booking.com, KAYAK, Priceline, agoda, Rentalcars.com, and OpenTable. Booking Holdings offers a wide variety of travel services, including airline tickets, hotel rooms, rental cars, cruises, and vacation packages. The company serves consumers in more than 220 countries and territories. Booking Holdings is committed to providing a great customer experience and strives to make the booking process as simple and easy as possible.

    Summary

    Cantor Fitzgerald recently initiated coverage of TripAdvisor Inc. and gave it an Underweight rating. This rating suggests that the stock may be overvalued and could potentially underperform in the future. This could be due to other factors such as positive news or market trends. Investors should carefully consider this rating and do their own analysis before making any investment decisions on TripAdvisor Inc. as it could be an indication of potential risks and challenges for the company in the future.

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