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3 Reasons to Buy TripAdvisor

By John Reeves - Updated Apr 7, 2017 at 11:21AM

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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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David Meier has no positions in the stocks mentioned above. John Reeves has no positions in the stocks mentioned above. The Motley Fool owns shares of Priceline.com and TripAdvisor. Motley Fool newsletter services recommend Priceline.com, Travelzoo, and TripAdvisor . Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Stocks Mentioned

Travelzoo Inc. Stock Quote
Travelzoo Inc.
TZOO
$5.75 (-2.87%) $0.17
Booking Holdings Stock Quote
Booking Holdings
BKNG
$1,957.21 (0.07%) $1.41
Expedia, Inc. Stock Quote
Expedia, Inc.
EXPE
$103.65 (-1.64%) $-1.73
TripAdvisor, Inc. Stock Quote
TripAdvisor, Inc.
TRIP
$24.95 (0.44%) $0.11

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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