Is TripAdvisor (TRIP) a Potential AI Investment?

Middle Coast Investing, an investment advisor firm, released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The third quarter was favorable for Middle Coast Investing. Its collective portfolio outperformed the S&P 500 and is ahead of benchmarks year to date. In Q3 2025, the US Portfolios returned 9.6% compared to 7.8% for the S&P 500. It’s Core U.S. portfolios returned 10% while the Russell 2000 returned 12%, the S&P 600 returned 8.7% and the Nasdaq generated 11.2% for the same period. Also, its European Portfolios appreciated by 5.5%. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Middle Coast Investing highlighted stocks such as Tripadvisor, Inc. (NASDAQ:TRIP). Headquartered in Needham, Massachusetts, Tripadvisor, Inc. (NASDAQ:TRIP) is an online travel company. The one-month return of Tripadvisor, Inc. (NASDAQ:TRIP) was -9.91%, and its shares gained 11.03% of their value over the last 52 weeks. On October 6, 2025, Tripadvisor, Inc. (NASDAQ:TRIP) stock closed at $16.00 per share, with a market capitalization of $1.858 billion.

Middle Coast Investing stated the following regarding Tripadvisor, Inc. (NASDAQ:TRIP) in its third quarter 2025 investor letter:

"Which gets to some of our ‘that’s also sort of AI’ investments. Tripadvisor, Inc. (NASDAQ:TRIP has a motherlode of user-generated content in its travel reviews. It could productize that better with summarization tools, or license the text to an LLM developer."

Tripadvisor, Inc. (NASDAQ:TRIP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 40 hedge fund portfolios held Tripadvisor, Inc. (NASDAQ:TRIP) at the end of the second quarter, compared to 44 in the previous quarter. In the second quarter of 2025, Tripadvisor, Inc. (NASDAQ:TRIP) reported revenue growth of 7%, or 5% in constant currency, totaling $529 million, which is at the upper end of the range. While we acknowledge the potential of Tripadvisor, Inc. (NASDAQ:TRIP) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Tripadvisor, Inc. (NASDAQ:TRIP) and shared the list of stocks rallied to new record highs. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.