TripAdvisor jumps on results, upgrade
NEW YORK (AP) — Shares of TripAdvisor Inc. rose to an all-time high Wednesday after the online travel company posted fourth-quarter results that led an RBC Capital Markets analyst to upgrade his rating on the stock.
Analyst Mark Mahaney upgraded TripAdvisor to "Outperform" from "Sector Perform." The "Outperform" rating is similar to a "Buy," while "Sector Perform" is similar to a "Hold."
The upgrade comes after TripAdvisor reported mixed fourth quarter results late Tuesday. Its net income fell, and missed Wall Street expectations, but its revenue jumped and was stronger than analysts expected. Most of its revenue came from click-based advertising.
Mahaney said in a research note that he expects "accelerating growth in the company's key click-based advertising revenue segment."
Another analyst, Chad Bartley from Pacific Crest Securities, said higher prices and an improved smartphone app could "help accelerate growth" in 2014.
Shares of TripAdvisor, which is based in Newton, Mass., rose $7.46, or 8.9 percent, to $91.66 in afternoon trading Wednesday. Earlier, they rose to a high of $91.98.