r/stocks
Even though TRIP is up more than 5% today, I still think the market is undervaluing the company
TRIP is undervalued due to potential buybacks from TheFork sale, Amex partnership catalysts, and Starboard's focus on capital allocation.
- Sale of TheFork brings ~$700M cash, potential $400-500M share buybacks to boost EPS.
- Potential deeper partnership with Amex could drive high-value traffic to Viator.
- Starboard on the board ensures better capital allocation and focus on shareholder value.
In my opinion, the market still does not fully reflect TRIP’s potential.
The sale of TheFork brings in about $700 million in cash. If, after the deal closes, a large part of that money is used for share buybacks (for example $400–500 million), the number of shares outstanding could fall significantly, increasing EPS and the value of each remaining share.
Another possible catalyst is the relationship with Amex. So far, only the sale of TheFork has been announced, but any deeper partnership around Viator (such as integration into Amex Travel or Membership Rewards) could give Viator access to millions of premium travelers with high spending power. This has not been announced, but it is a logical strategic direction worth watching.
With Starboard now on the board, a stronger focus on capital allocation, and continued growth at Viator, I believe the next few quarters could be much more interesting for shareholders than the current share price suggests.
Why do you assume they’re going to do share buy backs?
Fro their official press release “Potential uses of proceeds include share repurchases, debt paydown, or inorganic investment within the experiences category.” …on corrent market cap 1,5b it can be huge