TripAdvisor (NASDAQ: TRIP) shareholders beat the market last month, as their stock gained 16% compared to a 4% decrease in the S&P 500 , according to data provided by S&P Global Market Intelligence .
The travel specialist's stock remains well below its all-time high, which it set in mid-2014.
Investors reacted positively to fourth-quarter earnings results that paired 2% higher revenue with a swing to net losses. On an adjusted basis, though, TripAdvisor showed significant progress at boosting profitability in its core hotel business after nearly two straight years of declines.
In other positive news for the business, its non-hotel segment, which includes bookable travel attractions, expanded by 20% to reach 24% of the broader business -- up from 15% in 2015.
TripAdvisor's management team had to accept slower user growth in exchange for improved profitability last quarter, and they made it clear that this is a trade-off they're willing to keep making until the hotel segment reaches firmer financial footing. However, investors can expect weak overall earnings in 2018 as the company directs more resources into building up the promising, but not yet profitable non-hotel segment.
10 stocks we like better than TripAdvisor
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has tripled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and TripAdvisor wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of March 5, 2018
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.