Tripadvisor’s stock price up 11% in pre-market trading on Nasdaq. Can it continue to rally?

Tripadvisor’s stock price saw a significant surge in pre-market trading on Nasdaq, rising by over 11% from the previous day’s close. The online travel company announced the formation of a special committee to explore potential deals, leading to the spike in its stock price. Currently, the company’s market cap stands at $3.44 billion.

The special committee of Tripadvisor has appointed Centerview Partners as its financial adviser to explore potential alternatives, in response to Liberty TripAdvisor Holdings’ disclosure of its intent to evaluate options involving the two companies. Liberty TripAdvisor, which holds a 21% stake in Tripadvisor, was created at the time of Tripadvisor’s spin-off from Liberty Interactive.

Despite this positive news, some analysts have raised concerns about Liberty TripAdvisor’s heavy indebtedness, with a market cap of $89 million and debt of $2.75 billion. Tripadvisor is scheduled to report its earnings on February 14, with analysts expecting revenue of $374.4 million and earnings of 22 cents per share.

According to the Nasdaq website, Tripadvisor is a leading online travel platform that offers 1 billion reviews and information on about 8 million accommodations, restaurants, experiences, airlines, and cruises. In 2021, 61% of the company’s revenue came from its hotel, media, and platform segment.

The surge in Tripadvisor’s stock price reflects investor optimism about the company’s potential deals and its upcoming earnings report. As the travel industry continues to recover from the impact of the COVID-19 pandemic, Tripadvisor’s strategic initiatives and financial performance will be closely watched by investors and analysts.

In conclusion, Tripadvisor’s stock price has rallied on the news of the formation of a special committee to explore potential deals, as well as the upcoming earnings report. The company’s market performance in the coming days will be a key focus for investors and industry observers.

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