Middle Coast Investing on Tripadvisor, Inc.
Thesis
Tripadvisor remains an investment because Viator appears to be a destination for travelers booking experiences. The sale of TheFork provides balance-sheet flexibility while management works through weak results. Viator has guided to flat peak-quarter revenue, and the thesis depends on whether this is temporary softness rather than evidence that Viator lacks the expected destination value.
“I invested in TripAdvisor because Viator appears to be a destination, point of sale part of the travel funnel.”
Key risks
- Flat Viator revenue in peak season
- Decline in the legacy Tripadvisor operation
- Expected total quarterly revenue contraction
- Viator may be less of a destination than hoped