HALISTER1: TripAdvisor Slips as Needham Cuts to Underperform on Lower ROI

TripAdvisor Slips as Needham Cuts to Underperform on Lower ROI

(Bloomberg) -- TRIP’s instant booking business model has lower ROI than expected, Needham analyst Laura Martin writes in note; shares down 1.5% in pre-market trading.
  • Other reasons for rating cut include:
  • CPMs on mobile are monetizing at 1/3 the rate of desktop, presenting a revenue headwind
  • Company’s strategic shift from review site to booking engine has been more expensive than hoped
  • TRIP not positioned to win marketing war vs. PCLN or EXPE
  • No incremental revenue seen benefiting shareholders in 2017
  • Revenue, Ebitda multiples and P/E ratio makes stock expensive relative to peers
  • NOTE: Feb. 22, TripAdvisor, Trivago Cut at Cowen Amid Travel Search ‘Meta Wars’
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
TRIP US (TripAdvisor Inc)

People
Laura Martin (Needham & Co LLC)

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