During Dec’11, Expedia (NASDAQ: EXPE) announced the completion of the spin-off of TripAdvisor (NASDAQ: TRIP). TripAdvisor, the online travel portal, enables users to plan a trip, while Expedia is into the business of online travel bookings with business agreements over 145,000 hotels and 300 airlines.
The deeper point, of course, is the comparison between TripAdvisor and Expedia’s stock price performance right from the day it got spun-off i.e. Dec 7, 2011. The interesting part is that TripAdvisor had its share of glory twice as many times as compared to Expedia with a growth of 157%. Today, the market cap of Expedia is at least 35% smaller to that of Trip Advisor. The main reason of TripAdvisor’s success is that, apart from showing travel reviews, the company also started showing “more hotel” options side-by-side. Although we love the company for its yesteryear glories, the future looks competitive.
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