Tripadvisor Inc (TRIP), Expedia Inc (EXPE): Three Reasons Why This Stock Is on the Rise

Page 2 of 2

Competitors

Expedia Inc (NASDAQ:EXPE) reported higher than expected revenue of $1.1 billion in the first quarter, which represents a 24% jump. However, the company has to do something to slow down its negative trend in earnings. Currently, EPS is at $0.25 a share, down from $1.32 in the third quarter of 2012. Some of this bottom line loss was due to Hotwire, which witnessed usage drop owing to Hurricane Sandy. However, the acquisition of Trivago was a relief for Expedia Inc (NASDAQ:EXPE) as it expanded its reach, especially in the European market. Investors might want to wait for some more time to have a correct measure and effect of the acquisition.

The case of Orbitz Worldwide, Inc. (NYSE:OWW) is somewhat similar to Expedia Inc (NASDAQ:EXPE). Profit was down whereas revenue increased 7% to $203 million, above estimates. The partnership with American Express Travel has proved to be fruitful for Orbitz Worldwide, Inc. (NYSE:OWW), which contributes the most to the growth of its business lines. Investors should not ignore this stock which is growing fast through partnerships and acquisitions, and is finding ways to stay competitive.

Summary

To conclude, I believe that TripAdvisor will slowly outperform its peers in the travel industry within a short span of time. Even Priceline.com Inc (NASDAQ:PCLN) which has a greater market cap than TripAdvisor is not that popular outside the U.S. The transition to 100% meta display functionality is a good move for TripAdvisor according to me. In my opinion, the stock can easily rise much higher in the coming months.

The article 3 Reasons Why This Stock Is on the Rise originally appeared on Fool.com is written by Tanya Kanodia.

Tanya Kanodia has no position in any stocks mentioned. The Motley Fool recommends TripAdvisor. The Motley Fool owns shares of TripAdvisor. Tanya is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Page 2 of 2