TripAdvisor Inc.’s [NASDAQ:TRIP] stock price has increased drastically since Tuesday. The stock shot up by more than 14% yesterday. It has only continued to go up today, with the value increasing by another 0.51%.
Shares have been on the rise all week, and things are looking up for the travel company.
There is speculation that the travel-recommendation service seems to be a takeover target, as there has been a prominent altitude gain all week. Although nothing has been confirmed, the speculation mainly stems from the sudden increase in price this week.
Evidence for this theory is the company’s consistent struggles with business fundamentals, such as competitive pressures from other travel agencies. TripAdvisor also failed to launch its direct booking business, which most definitely put a dent in their over stock value in 2017.
Why the TripAdvisor share price went up
TripAdvisor’s struggles pushed them into the right direction, as the travel company sought changes for the better. The company has brought on a new board member, Jay Hoag, who has served on the boards of Zillow, Electronic Arts and even Netflix.
Hoag’s portfolio may have stood out to TripAdvisor — his prior experience could have caught their attention. Anybody working on the board of Netflix would catch the eye of some established companies. His insight and personal experience may have contributed to the sudden price rise.
The company has a history of shifting ownership. They were owned by Expedia in 2011, and have gone through frequent changes over time as they have tried to find their feet.
What does the future hold for TripAdvisor?
It seems that TripAdvisor may be in for an interesting ride, as they now see themselves as a potential buyout target. They have struggled over time, as they cannot monetise on mobile platforms at the same rate as on desktop.
However, their recognition and success does complement other travel agencies, such as Priceline and Expedia. So they could potentially once again be part of another business.
Publisher, Money Morning
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