Starboard Value Grabs 9% of Tripadvisor, Igniting a 17% Stock Surge and Investor Debate

Why Did Starboard Value Target Tripadvisor?

Have you ever wondered why activist investors suddenly swoop in on a company? Starboard Value, led by Jeff Smith, is known for spotting undervalued businesses and shaking things up. In early July 2025, Starboard revealed it had quietly built a 9% stake in Tripadvisor, making it one of the platform’s largest shareholders. The firm called Tripadvisor 'undervalued,' and its $160 million investment sent a clear message: they see big potential for a turnaround. This move comes after Tripadvisor’s stock lagged behind competitors like Booking Holdings and Airbnb, and after the company rejected several takeover offers last year at much higher prices than Starboard paid. It’s a classic Starboard play—find a company with hidden value, buy in big, and push for change.

How Did the Market React? A 17% Surge and a Buzz of Optimism

The news of Starboard’s stake hit the market like a jolt of caffeine. Tripadvisor’s shares soared by 17% in a single day, closing at $17.50, up from $14.99 the previous session. That’s not just a blip—over three trading days, the stock rallied over 34%. Investors rushed in, betting that Starboard’s involvement could spark much-needed reforms. Even before this, Tripadvisor’s stock had been struggling, up only 1.5% for the year compared to the Dow U.S. Travel Index’s 10.5% gain. Now, with Starboard at the table, analysts and bloggers are buzzing about a possible turnaround, especially as Tripadvisor trades at a much lower earnings multiple than its peers.

What’s Starboard’s Playbook? Engagement, Efficiency, and Maybe More

So, what’s next? Starboard isn’t just a passive investor. The firm has a history of shaking up boards, pushing for cost cuts, and demanding strategic changes. In its regulatory filing, Starboard said it plans to engage Tripadvisor’s management and board on ways to unlock value. This could mean anything from board reshuffles and cost discipline to exploring mergers, sales, or even spinning off fast-growing subsidiaries like Viator and TheFork. Starboard’s playbook often involves simplifying capital structures and pushing for operational efficiency. The recent merger with Liberty Tripadvisor Holdings, which eliminated dual-class shares, fits right into this strategy. Could we see more bold moves ahead? Many investors think so.

Tripadvisor’s Challenges: Can Activist Pressure Fix Everything?

But let’s not kid ourselves—Tripadvisor isn’t a simple fix. The company’s core travel review business has been losing steam, with revenue from its flagship brand dropping 8% last year. Meanwhile, its subsidiaries Viator and TheFork are growing, but not fast enough to offset the decline. Tripadvisor faces tough competition from Google Travel, Airbnb, and even Instagram Guides. There are also operational headaches: declining average booking values, rising cancellations, and a heavy reliance on unpredictable travel demand. Starboard’s challenge will be to push for improvements without alienating management or disrupting the user experience that made Tripadvisor famous.

The Cultural and Strategic Context: Why Activist Investing Matters

Activist investing is a big deal in the U.S. market, and Starboard’s move is a classic example. In 2025, activists are taking a more collaborative approach—securing board seats and settlements rather than waging all-out proxy wars. Starboard’s recent deals with Kenvue and Autodesk show this trend. For Tripadvisor, this could mean a period of negotiation rather than confrontation. Culturally, American investors often welcome activist pressure as a sign that change is coming, especially when a company is stuck in a rut. But there’s always a risk: push too hard, and you can destabilize a business; go too soft, and nothing changes.

Investor Sentiment: High Hopes but Cautious Optimism

What are investors thinking? There’s definitely excitement—brokerages now rate Tripadvisor as a 'buy' or 'hold,' with a median price target of $16.63. But there’s also caution. Tripadvisor’s valuation, at just 7.9 times forward earnings, looks cheap, but that reflects skepticism about its ability to execute a turnaround. Some bloggers and analysts argue that Starboard’s $34-per-share intrinsic value estimate is ambitious, given the company’s operational challenges. The next big milestones? Watch for Starboard’s public demands (expected later this summer) and Tripadvisor’s Q2 earnings report. If margins stabilize and user engagement keeps rising, the stock could rally further.

Daily Price Movement: The Numbers Behind the Headlines

Let’s break down the recent price action. On July 2, Tripadvisor closed at $14.99. After Starboard’s disclosure, the stock jumped to $17.50 on July 3—a 17.3% gain. Over the next two sessions, shares continued to climb, peaking at $18.70 before settling back slightly. Year-to-date, Tripadvisor is now up 19.6%, outpacing Airbnb (up 4.6%) and Expedia (down 5%), but still trailing Booking Holdings (up 15%). Trading volumes have spiked, reflecting renewed interest from both retail and institutional investors.

Looking Ahead: Will Starboard’s Bet Pay Off?

So, what’s the bottom line? Starboard Value’s $160 million bet is a bold vote of confidence in Tripadvisor’s future. If the company can leverage its growing subsidiaries, cut costs, and revamp its core brand, there’s real upside for shareholders. But execution risks are high, and the travel sector remains fiercely competitive. For now, the market is giving Tripadvisor the benefit of the doubt—but as always, the real test will be in the numbers and the next set of strategic moves. Are you watching Tripadvisor? This could be one of the most interesting activist stories of 2025.