Why Is TRIP Stock Rallying Today?

• Starboard said it is intending to nominate a highly-qualified slate of directors representing a majority of the Board. 
• Tripadvisor said its management and the Board are focused on pursuing all avenues to drive value for shareholders.

Shares of TRIP rallied on Tuesday after it responded to a shareholder letter from Starboard value who has urged Tripadvisor to either explore sale or shake up its board. 

At the time of writing, TRIP stock was 6.5% up. 

Starboard Value’s Letter

Starboard said that it believes that Tripadvisor should be formally exploring a sale of the entire company, in one or multiple transactions. Starboard holds more than 9% stake in the company. 

Starboard in its letter to TRIP highlighted the company’s prolonged underperformance and failure to take decisive action to create shareholder value. 

“Shareholders deserve a credible, comprehensive process focused on maximizing value. If this Board cannot take decisive action in a timely manner, as it has proven time and time again, we believe it is time for meaningful change,” it said in a shareholder letter.  

“We have offered to work with Tripadvisor to reconstitute the Board, but it has become clear to us that we must take action into our own hands and seek to replace a majority of the Board,” Starboard added. 

Starboard said that during TripAdvisor’s upcoming window for shareholders to submit director nominations with respect to its 2026 annual meeting of shareholders, Starboard is intending to nominate a highly-qualified slate of directors representing a majority of the Board. 

TRIP’s Response

Tripadvisor said that its Board and management team regularly engage with investors and welcome constructive input that furthers the common goal of enhancing value for all shareholders.

Tripadvisor will continue to take actions it believes will drive sustainable value as it executes its strategic priorities and further positions the company for long-term growth, it said in a response to the shareholder letter. 

How Did Stocktwits Users React?

Retail sentiment around TRIP trended in ‘neutral’ territory amid ‘extremely high’ message volume. 

Shares in the company have risen 42% over the past year. 

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

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