TripAdvisor Stock Crashes to New Low Amid Rising Competition and Slow Growth

Trips's stock has plummeted to an all-time low, wiping out over $15 billion in market capitalization. The company's struggles continue as it faces headwinds from rising competition and slow growth.

The recent sale of TheFork to American Express for $700 million is expected to reduce TripAdvisor's cash burn and shift value to a stronger balance-sheet operator. However, this deal also comes with risks: if American Express' diversified network and credit exposure are not resilient enough, it could impact the company's value.

The company's revenue growth has slowed significantly, with a 7% drop in recent quarters. Its hotels segment saw the most weakness, while its experiences segment's adjusted EBITDA fell by 19%. To address these challenges, TripAdvisor is focusing on growing its experiences business and implementing AI tools.