BTIG downgrades TripAdvisor on AI risks, sees limited catalysts after TheFork sale

Investing.com -- BTIG downgraded TripAdvisor to Neutral from Buy, warning that the travel platform faces mounting risks from artificial intelligence, weakening traffic trends and limited prospects for further strategic value creation after agreeing to sell TheFork.

The brokerage argued that TripAdvisor is increasingly exposed to AI-driven changes in online travel discovery, with AI-powered search summaries and "zero-click" search reducing traffic to its core Tripadvisor-branded sites. BTIG said the company's top-of-funnel positioning leaves it vulnerable as major technology platforms gain a larger role in travel planning, creating pressure on its legacy metasearch business and, indirectly, its Experiences segment.

BTIG also cut its second-half revenue forecasts below Wall Street expectations, citing continued traffic weakness at the Tripadvisor brand and mixed signals for Viator. The brokerage lowered its third-quarter revenue estimate to $561 million from $564 million and its fourth-quarter estimate to $427 million from $430 million, both slightly below consensus, while trimming its 2026 and 2027 revenue and earnings forecasts.

While BTIG acknowledged the stock trades at an inexpensive valuation of roughly 5.5 times expected 2026 EBITDA, it said the completion of TheFork sale leaves little visibility for additional strategic actions, with Viator now viewed as a core part of TripAdvisor's long-term strategy rather than a likely divestiture candidate. The firm added that the investment case has shifted back to fundamentals, where it sees few near-term catalysts.

BTIG no longer assigns a price target following the downgrade, saying the shares appear fairly valued despite their discounted multiple.

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