Google's (GOOG) Frommer's Deal is No 'Big Threat' to TripAdvisor (TRIP) - Analyst
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Price: $10.00 -0.3%
Rating Summary:
9 Buy, 31 Hold, 9 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 6 | New: 26
Rating Summary:
9 Buy, 31 Hold, 9 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 6 | New: 26
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TripAdvisor (Nasdaq: TRIP) shares have quieted down following earlier activity on news that Google (Nasdaq: GOOG) is acquiring Frommer's and other travel publication assets from John Wiley (NYSE: JW-A)(NYSE: JW-B).
Susquehanna analyst Herman Leung is coming to TripAdvisor's defense, saying the deal won't be a "big threat" to TripAdvisor.
With 75 million reviews, TripAdvisor has a much bigger scale than Frommer's. Also, recent data from comScore has about 54 million global uniques to Tripadvisor's website in June, compared with 1.7 million for Frommer's.
The biggest concern playing on investors' minds is Google scaling-up in the online travel agency segment. Overall, Leung sees the deal as "net neutral" for online travel agencies.
Leung has a Neutral rating on TripAdvisor and $31 price target. TripAdvisor shares are down about 5 percent, after being as much as 6.6 percent lower earlier.
Susquehanna analyst Herman Leung is coming to TripAdvisor's defense, saying the deal won't be a "big threat" to TripAdvisor.
With 75 million reviews, TripAdvisor has a much bigger scale than Frommer's. Also, recent data from comScore has about 54 million global uniques to Tripadvisor's website in June, compared with 1.7 million for Frommer's.
The biggest concern playing on investors' minds is Google scaling-up in the online travel agency segment. Overall, Leung sees the deal as "net neutral" for online travel agencies.
Leung has a Neutral rating on TripAdvisor and $31 price target. TripAdvisor shares are down about 5 percent, after being as much as 6.6 percent lower earlier.
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