Bank of America Downgrades Tripadvisor Amid AI Disruption and Declining Revenue
Bank of America has downgraded Tripadvisor (TRIP) from Buy to Underperform, significantly slashing its price target from $15 to $8. The downgrade follows a disappointing third quarter where revenue fell 11% to $436.4 million, missing both management guidance and Wall Street estimates. The company's core hotel business saw a sharp 23% decline in revenue, while the growth of its Experiences division, including Viator, has failed to offset these losses. Beyond immediate financial misses, analysts warn that generative AI poses a structural threat to Tripadvisor's business model. As consumers shift toward using AI assistants for personalized trip planning and instant recommendations, the traditional search-engine-driven traffic that Tripadvisor relies on is expected to decline. Combined with upcoming leadership changes and slowing growth, Bank of America suggests the company faces heightened execution risks.
Topics: AI Disruption Management Changes Stock Downgrade Travel Industry