Tripadvisor (TRIP) Soars as Starboard Jumps In; But Can One Activist Really Change the Narrative?

Tripadvisor (TRIP, Financials) lit up the tape Thursday; the stock popped nearly 17% after activist investor Starboard Value revealed a 9% stake confirming earlier buzz from The Wall Street Journal. The reaction was swift; traders jumped in, betting that Starboards involvement could shake things up at the online travel veteran. But Wall Street? Still not convinced.

Starboard said it believes TRIP was undervalued at the time of purchase; and it plans to engage with management and the board on unlocking value. Thats familiar language from an activist firm known for dialing up pressure and getting results.

The timing, for some, couldnt be better. TRIP stock had been treading water for months; down more than 30% in 2024, the rebound had barely begun before this catalyst hit. The company has long struggled with macro headwinds; brutal competition from much larger online travel agencies hasnt helped either. Even Tripadvisors bright spots Viator and TheFork have been unable to mask persistent softness in the core brand.

Analysts havent been impressed. Jefferies John Colantuoni bumped his price target slightly from $10 to $11 after a Q1 beat; but kept a Sell rating. He flagged margin pressure; a tricky shift toward third-party bookings; and an overall mix that leaves Tripadvisor vulnerable to platform giants. According to him, the recent stock jump wasnt due to a turnaround just a low bar that TRIP happened to clear.

Still, bulls are hoping Starboard forces some overdue changes. Cost-cutting, smarter monetization, and maybe a stronger push into AI-driven planning all are on the table. BTIG chimed in with ideas too; including a pivot away from failed subscription attempts and deeper investment in member-based bookings. But even they noted one big unknown no one knows if Tripadvisor is seriously exploring strategic alternatives.