The Catalyst

TRIP stock exploded 16.9% today to $17.52 after activist heavyweight Starboard Value dropped a bombshell—they’ve built a 9% stake worth $160 million. When Jeff Smith’s crew shows up, management better buckle up. Volume went bonkers at 13.8M shares, crushing the average by 120%.

Why This Matters

Starboard doesn’t mess around. This is the same firm that forced changes at Darden Restaurants, Office Depot, and Yahoo. Their playbook? Unlock value or sell the company. Here’s the kicker—Tripadvisor has already rejected takeover offers in the past year. With Starboard now one of the largest shareholders, those rejected bids are back in play.

The timing is perfect. Travel demand is booming post-pandemic, yet TRIP trades at a massive discount to peers like Booking and Expedia. Starboard smells blood in the water—a profitable company with 500M+ monthly users trading at just $2.5B market cap? That’s activist catnip right there.

Technical Setup

TRIP had been building a massive base between $12-14 for months, compressing volatility to extreme lows. Yesterday’s push above $15 was the first sign something was brewing. Today’s explosion through multiple resistance levels confirms major accumulation was happening under the surface.

Key observations from the daily chart:

  • Broke above 200-day moving average at $14.50 with authority
  • Volume surge confirms institutional positioning (Starboard wasn’t alone)
  • RSI hit 72—overbought but momentum is momentum with activists involved
  • Next major resistance at $20 (2024 highs), then $25 (multi-year resistance)

Is TRIP Stock a Buy After Starboard Stake?

With an activist of Starboard’s caliber involved, this story is just beginning. Any pullback to the $16-16.50 breakout zone should find buyers. Remember, activists don’t build 9% positions for 20% gains—they want doubles or strategic alternatives.

Today’s Price Action

The fireworks started right at the open. TRIP gapped up huge and never looked back—classic activist reveal price action.

TRIP Stock Chart Analysis: TRIP 5-minute chart showing explosive activist-driven breakout with sustained momentum - July 3, 2025

Intraday Highlights

  • 9:30 AM: Gap open at $15.88 with massive volume—no morning dip
  • 10:00 AM: First push through $16.50 as algos pile in
  • 11:00 AM: Consolidation above $17—textbook bull flag
  • 1:00 PM: Closes at $17.52—bulls in complete control

Volume Analysis

That 13.8M share explosion screams institutional urgency. The heaviest volume hit during the first hour as every merger arb desk on the street positioned for potential outcomes. What’s telling? Volume stayed elevated all day. When you see 120% above average with an activist involved, expect follow-through.

Starboard’s Track Record

Why the market takes Starboard seriously:

  • Darden Restaurants: Forced board changes, stock doubled
  • Office Depot: Pushed strategic alternatives, massive value unlock
  • Yahoo: Helped engineer Verizon sale
  • Macy’s: Currently pushing for real estate monetization

Jeff Smith’s team doesn’t do passive investing. They’ll push for operational improvements, board changes, asset sales, or an outright sale. With $160M on the line, they’re all-in.

Trading Strategy

For traders looking to ride this activist wave:

Entry Points

  • Aggressive: Buy any dip to $16.50-17.00 (above breakout zone)
  • Conservative: Wait for pullback to $15.50-16.00 (gap fill area)

Risk Management

  • Stop Loss: $14.75 (below 200-day MA and yesterday’s close)
  • Position Size: Activist situations can be volatile—size accordingly

Profit Targets

  • First Target: $20.00 (2024 resistance and psychological level)
  • Second Target: $25.00 (Multi-year resistance zone)
  • Final Target: $30.00+ (Takeover scenario)

What Price Target for TRIP Stock?

Near-term, $20 is the obvious target—that’s where sellers showed up in 2024. But with Starboard involved, think bigger. If they push for a sale, $30+ isn’t crazy. Booking trades at 20x EBITDA; apply that to TRIP and you get $35-40.

When to Take Profits on TRIP?

Activist plays require patience. Consider this approach:

  • Sell 1/4 at $20 to book quick gains
  • Hold core position for Starboard’s inevitable 13D filing
  • Trail stops once strategic alternatives are announced

Where to Place Stop Loss for TRIP?

$14.75 is your line in the sand—below the 200-day MA and yesterday’s close. Once TRIP proves it can hold $16, trail your stop higher. Give it room though—activist situations see wild swings.

Key Levels to Watch

  • Support: $17.00 (Today’s consolidation), $16.00 (Gap area), $15.00 (Yesterday’s high)
  • Resistance: $18.50 (Intraday test), $20.00 (2024 high), $25.00 (Multi-year resistance)
  • Stop Loss: $14.75 (Below 200-day MA)

Travel Sector Dynamics

Why TRIP is an activist target:

  • Undervaluation: Trades at fraction of travel peers’ multiples
  • Market Position: 500M+ users but stock stuck in $12-15 range
  • Cash Generation: Profitable with strong free cash flow
  • Strategic Value: Unique reviews database valuable to larger players

TRIP vs Travel Peers Stock Comparison

TRIP trades at 8x EBITDA versus Booking at 20x and Expedia at 12x. That valuation gap plus rejected takeover offers equals activist opportunity. Starboard sees a company worth 2-3x current price with right changes or buyer.

Why TRIP Stock Is Rising Today

Simple: When Jeff Smith shows up with 9% of your company, investors know change is coming. Whether it’s operational improvements, board shakeup, or outright sale, Starboard has the track record to make it happen.

The Bottom Line

TRIP delivered the kind of move that makes traders’ careers—a massive activist reveal driving a 17% explosion. Starboard Value doesn’t build $160M positions for fun. They see deep value and have the expertise to unlock it. With travel booming and TRIP trading at steep discount to peers, the setup is compelling.

This isn’t just another one-day pop. Activist campaigns typically play out over months with multiple catalysts. Today’s move is likely just the opening act. Any weakness should be bought—when activists of Starboard’s caliber get involved, betting against them rarely works.

What to Watch Tomorrow

  • Hold above $16 to maintain breakout integrity
  • Watch for Starboard 13D filing with detailed plans
  • Monitor other travel stocks for sympathy moves
  • Volume should stay elevated (8M+ shares)
  • Key resistance at $18.50—break that and $20 comes quickly