Tripadvisor Stock Tumbled 20% – Opportunity or Trap?
Tripadvisor (TRIP) stock has fallen by 20.1% in less than a month, from $16.72 on 27th Oct, 2025 to $13.36 now. Should you buy this dip? Dip buying is a viable strategy for quality stocks that have a history of recovering from dips.
Dip buying is a viable strategy for quality stocks that have a history of recovering from dips. As it turns out, TRIP stock passes basic quality checks. But the bad news is that historically, the median return for the 12-month period following sharp dips was -7.1%, with median peak return of 40%. We define sharp dip as stock going down 30% or more, in less than 30 day period.
Below, we get into details of historical dips and subsequent returns.
Historical Median Returns Post Dips
- CCL Tops Tripadvisor Stock on Price & Potential
- Why CCL Could Outperform Tripadvisor Stock
- CCL Looks Smarter Buy Than Tripadvisor Stock
- CCL Looks Smarter Buy Than Tripadvisor Stock
- TRIP Has Surged 30%, But Risks Loom Large
- CCL Looks Like a Smarter Buy Than Tripadvisor Stock: Lower Valuation, Stronger Growth
| Period | Past Median Return |
|---|---|
| 1M | 7.0% |
| 3M | 15.4% |
| 6M | 8.3% |
| 12M | -7.1% |
Historical Dip-Wise Details
TRIP had 6 events since 1/1/2010 where the dip threshold of -30% within 30 days was triggered
- 40% median peak return within 1 year of dip event
- 99.5 days is the median time to peak return after a dip event
- -24% median max drawdown within 1 year of dip event
| 30 Day Dip | TRIP Subsequent Performance | |||||||
|---|---|---|---|---|---|---|---|---|
| Date | TRIP | SPY | 1Y | Peak Return |
Max Drop |
# Days to Peak |
||
| Median | -7% | 40% | -24% | 100 | ||||
| 5082024 | -35% | -0% | -16% | 6% | -41% | 6 | ||
| 7132022 | -30% | -8% | -3% | 57% | -15% | 34 | ||
| 11302021 | -31% | 2% | -21% | 16% | -33% | 77 | ||
| 3092020 | -32% | -17% | 151% | 166% | -28% | 359 | ||
| 11162017 | -30% | 2% | 110% | 121% | 0% | 357 | ||
| 2052016 | -31% | -8% | -11% | 22% | -21% | 122 | ||
Tripadvisor Passes Basic Financial Quality Checks
Revenue growth, profitability, cash flow, and balance sheet strength need to be evaluated to reduce the risk of a dip being the sign of a deteriorating business situation.
| Quality Metrics | Value | Quality Check |
|---|---|---|
| Revenue Growth (LTM) | 4.2% | Pass |
| Revenue Growth (3-Yr Avg) | 11.6% | Pass |
| Operating Cash Flow Margin (LTM) | 18.2% | Pass |
| Leverage (see below) | – | Pass |
| => Interest Coverage Ratio | 2.6 | |
| => Cash To Interest Expense Ratio | 21.4 |
Not sure if you can take a call on TRIP stock? Consider portfolio approach
Why Stock Pickers Win More With Multi Asset Portfolios
Single markets are unpredictable but different assets react differently. A multi asset portfolio cuts downside shocks while keeping upside on the table.
The asset allocation framework of Trefis’ Boston-based, wealth management partner yielded positive returns during the 2008-09 period when the S&P lost more than 40%. Our partner’ strategy now includes Trefis High Quality Portfolio, which has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices