TripAdvisor Inc (TRIP): Today's Featured Internet Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model

TripAdvisor ( TRIP) pushed the Internet industry higher today making it today's featured internet winner. The industry as a whole was unchanged today. By the end of trading, TripAdvisor rose $0.95 (1.8%) to $54.79 on average volume. Throughout the day, 1,749,640 shares of TripAdvisor exchanged hands as compared to its average daily volume of 1,931,100 shares. The stock ranged in a price between $53.29-$55.31 after having opened the day at $53.68 as compared to the previous trading day's close of $53.84. Other companies within the Internet industry that increased today were: Digital River ( DRIV), up 9.9%, VirnetX ( VHC), up 8.6%, Zynga Inc Class A ( ZNGA), up 7.4% and Net Element International ( NETE), up 5.0%.
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TripAdvisor, Inc., an online travel company, provides trip advisory services. TripAdvisor has a market cap of $6.8 billion and is part of the technology sector. The company has a P/E ratio of 35.9, above the S&P 500 P/E ratio of 17.7. Shares are up 24.0% year to date as of the close of trading on Friday. Currently there are 8 analysts that rate TripAdvisor a buy, 1 analyst rates it a sell, and 10 rate it a hold.

TheStreet Ratings rates TripAdvisor as a hold. The company's strengths can be seen in multiple areas, such as its notable return on equity, good cash flow from operations and solid stock price performance. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet.

On the negative front, Friendfinder Networks ( FFN), down 10.3%, Selectica ( SLTC), down 6.6%, Geeknet ( GKNT), down 5.3% and Blucora ( BCOR), down 4.2% , were all laggards within the internet industry with Baidu ( BIDU) being today's internet industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the internet industry could consider First Trust Dow Jones Internet Idx ( FDN) while those bearish on the internet industry could consider ProShares Ultra Short Technology ( REW).

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