TripAdvisor stock hits record low after weak quarter

TripAdvisor shares fell to a record low of $8.82 on Thursday after the company reported a 7% decline in revenue to $441 million for the June quarter. The stock drop follows weaker traffic, softer bookings and several analyst price-target cuts.

The Hotels and Other segment posted revenue of $163 million, down 21% year over year. The Experiences business generated more than $278 million in the quarter.

Company-provided figures and analyst estimates point to further revenue declines. The average analyst forecast calls for third-quarter revenue of about $453 million, a 17.8% decline, and fourth-quarter revenue of roughly $340 million, a 17% drop. Full-year revenue is projected near $1.58 billion, down about 16.2% from the prior year.

Site-traffic data from SimilarWeb showed roughly 100 million visitors last month, a 3.27% decline from the prior month. Analysts linked the lower traffic with softer booking activity. Competing travel companies are forecast to grow revenue this year, with Airbnb expected to increase to about $14.16 billion and Booking Holdings to about $29 billion. New AI-powered search tools were also cited as factors altering user behavior and search patterns.

TripAdvisor agreed to sell its restaurant-booking unit, TheFork, to American Express for $700 million and said it will use the proceeds to strengthen the balance sheet and capital allocation. Management indicated it is considering additional opportunities to catalyze shareholder value, including a potential sale. Earlier this year the board rejected a $17.50-per-share bid from an unnamed buyer.

Market reaction included price-target cuts from several brokerages: UBS lowered its target to $12 from $15, B. Riley Financial cut its target to $12 from $13, and Cantor Fitzgerald trimmed its target to $9 from $10. Technical indicators showed the stock trading below key moving averages and support levels, with some technical analysis pointing to a possible support level near $6.25.

TripAdvisor’s shares remain far below their 2014 peak of $98.80. The company reported lower revenue and traffic in the June quarter while pursuing asset sales and other options to address its financial position.