Tripadvisor's Experience and Dining Business Strength Not Enough to Warrant a Moat

Tripadvisor has a network of user-generated reviews and travel content (experiences, restaurants, and hotels) and an industry-leading experiences and restaurants position. In the second quarter of 2025, Tripadvisor's Viator (experiences brand) and TheFork (dining brand) continued to perform well, with revenue increasing 7% and 11%, respectively. We like that it continues to allocate capital toward the experiences vertical, as we see Tripadvisor and this $300 billion market having strong growth opportunities in the online travel space. Tripadvisor's leading global experience position is witnessed by Booking and Expedia moving away from building a presence in the vertical organically and instead partnering to use Tripadvisor's content. We think that the company might reengage exploring an initial public offering of its experience platform and think its Viator brand could fetch 2-3 times 2024 sales, or about $12-$17 per share. Meanwhile, Tripadvisor's online restaurant booking platform is also the market's leading international network, rivaled only by Booking's OpenTable, which leads in the United States.