October 17, 2012
The following video is part of our "Motley Fool Conversations" series, in which analyst John Reeves and advisor David Meier discuss topics across the investing world.
TripAdvisor's share price has been falling recently, and there are three reasons that investors should buy shares. TripAdvisor is the leading online travel research firm. It houses user-generated reviews of travel destinations, and then sells ads to online travel agents like Expedia and priceline.com. Not only does it have a first-mover advantage and a unique position in the industry, it benefits from the network effect. And the company has been strengthening those network bonds by integrating its platforms with Facebook in order to connect friends together. Finally, TripAdvisor has an excellent management team that's focused on the long-term success of the business, not just quarterly earnings. There's plenty of competition in the space, ranging from Kayak to Travelzoo and even Yelp!. But TripAdvisor has become the de facto standard for research. That and an attractive stock price is a winning combination for investors.
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