The following video is part of our "Motley Fool Conversations" series, in which analyst John Reeves and advisor David Meier discuss topics relating to their 10-Bagger portfolio.
TripAdvisor reported lower than expected sales. That was a surprise the market didn't expect. The company cited its "traffic quality improvement" initiative as one reason for the lower revenue. TripAdvisor was trying to make sure that it sent the best leads to customers like Expedia, priceline.com, and Orbitz, not just any lead. Management did cite some incredible growth: a 31% increase in monthly average unique visitors to 54 million and more than 200% growth in downloads of its mobile app. The company continues to strengthen its relationship with Facebook, and is seeing good traction in building social awareness. The drop looks somewhat overdone. TripAdvisor is the leader in online travel research and is extending that lead. Shares may represent an opportunity at this price.
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