Why Is TRIP Stock Jumping In Overnight Trading?

• According to a Wall Street Journal report, Starboard currently has more than a 9% stake in TripAdvisor, and it was looking to nominate a majority to the company’s board.  
• Shares of TripAdvisor are looking to snap a three-day declining streak and have tumbled 34% so far this year.
• The report said that the activist investor was planning to issue a letter announcing the plans to Tripadvisor’s board on Tuesday morning.

TripAdvisor Inc. shares (TRIP) rose more than 5% during overnight trading on Monday after activist investor Starboard Value was reportedly pushing for a shakeup of the company’s board at a time when it has posted weak quarterly results on slowing growth.

According to a Wall Street Journal report, Starboard currently has more than a 9% stake, and it was looking to nominate a majority to the company’s board.  Last year, Starboard’s CEO Jeff Smith reportedly said that TripAdvisor should consider selling its restaurant booking platform, TheFork, and maybe look for a sale of the entire company.

Shares of TripAdvisor are looking to snap a three-day declining streak and have tumbled 34% so far this year. The stock has been battered due to ongoing hotel demand headwinds and near-term investments in Experiences.

Starboard’s Push

The Wall Street Journal, citing a letter and people familiar with the matter, said that Starboard was planning to issue a letter announcing the plans to Tripadvisor’s board on Tuesday morning.

In October, a Reuters report had noted that Smith said Tripadvisor has an "amazing" brand, but "there is a huge opportunity to transform and reimagine the user experience to improve revenue growth."

Last week, during the company’s earnings call, CEO Matt Goldberg said that TripAdvisor’s 2025 results reflected continued momentum in its experiences and European dining marketplace offerings, which are increasingly replacing the declines in the company’s legacy meta search and media offerings.

“Our focus and investment are now deliberately centered on a large and growing marketplace opportunity, particularly in experiences, rather than on constrained, SEO-dependent legacy offerings,” Goldberg.

Goldman Sachs analyst Ben Miller cut the firm's price target on TripAdvisor to $80 from $92 and said that the company’s results showed a 2026 focus on growing its Experiences marketplace, targeted to drive the majority of revenue and core profit, while investing in AI initiatives, optimizing legacy offerings for profitability, and maintaining capital allocation priorities.

How Are Stocktwits Users Reacting?

Retail sentiment on TripAdvisor fell to ‘bearish’ from ‘bullish’ territory a week ago, with message volumes at ‘extremely high’ levels, according to data from Stocktwits.

A user on the platform said that the stock was $110 back in 2014 and “has been falling for years.” The stock was trading at $9.61 as of Friday’s close.

Shares of TripAdvisor have declined 46% in the last 12 months.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Also See: ZIM Stock Hits Best Week Since December - Who Is Buying This Shipping Firm?

Share

·

Add us on