Tripadvisor Stock Jumps as Activist Investor Starboard Value Takes 9% Stake

Shares of Tripadvisor (TRIP) soared 12% Thursday after activist investor Starboard Value took a 9% stake in the travel review provider.

In a regulatory filing, Starboard said it owned about 10.6 million shares of Tripadvisor, arguing that the stock was “undervalued and represented an attractive investment opportunity.”

Starboard added that it intends “to engage with the Issuer’s management and Board of Directors regarding opportunities for value creation.” Starboard noted that it might suggest a range of steps, including “making recommendations or proposals to the Issuer concerning changes to the capitalization, ownership structure, board structure (including board composition), potential business combinations or dispositions involving the Issuer or certain of its businesses, or suggestions for improving the Issuer’s financial and/or operational performance.”

Tripadvisor shares sank in 2020 when the COVID-19 pandemic caused a major slump in travel and tourism. They rallied back in 2021, but have steadily declined since as revenue from its namesake brand slid, while subsidiaries Viator and TheFork grew. The Wall Street Journal reported that the company turned down several takeover offers in the past year.

The stock price was marginally higher year-to-date going into today’s session.

Investopedia has reached out to Tripadvisor for comment.