Why TripAdvisor Stock Was Diving on Thursday
Key Points
It whiffed significantly on the bottom line in its fourth quarter.
It also narrowly missed on revenue.
- 10 stocks we like better than Tripadvisor ›
Travel and tourism are hot activities these days, but you wouldn't know that from the drubbing TripAdvisor (NASDAQ: TRIP) stock was taking on Thursday. A lackluster earnings report led investors to aggressively sell off the travel portal operator's shares; as of mid-session trading, they were down by almost 15%.
A trip-and-fall quarter
TripAdvisor published its fourth-quarter and full-year 2025 results well before market open that day. For the quarter, the company's revenue was essentially flat year-over-year at $411 million. Net income not according to generally accepted accounting principles (GAAP) swooned by 12% to $5 million, or $0.04 per share.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Image source: Getty Images.
With that, TripAdvisor recorded a double miss on the average analyst estimates. The pundit consensus for revenue was slightly higher, at $412.3 million, while that for non-GAAP (adjusted) net income was $0.17 per share.
During the quarter, TripAdvisor saw a significant increase in its experiences offerings, which allow travelers to sign up for unique activities at their destination. However, this was offset by a decline in TripAdvisor's legacy businesses' take. Profitability was affected by relatively higher spend on bolstering the experiences segment.
Other growth engines needed?
Investors are clearly unconvinced that the experiences business can move the needle for TripAdvisor, and I can't say I blame them.
Firstly, the company isn't the only travel operator offering such products, and even with the decline of the legacy business, it doesn't seem experiences will be a powerful source of growth. I don't see a compelling reason to own this stock just now.
Should you buy stock in Tripadvisor right now?
Before you buy stock in Tripadvisor, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Tripadvisor wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $429,385!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,165,045!*
Now, it’s worth noting Stock Advisor’s total average return is 913% — a market-crushing outperformance compared to 196% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of February 12, 2026.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tripadvisor. The Motley Fool has a disclosure policy.
Recommended Articles
