TripAdvisor Inc. (TRIP - Free Report) , an online travel research company, announced the acquisition of Oyster.com for an undisclosed sum.
New York-based Oyster.com provides online photos and reviews about hotels in about 150 cities.
The acquisition will complement TripAdvisor’s travel product portfolio by providing real photos and editorial contents of hotels at some famous destinations. This will help customers to better plan their holiday trips by gathering useful information on hotels. This will improve efficiency, thereby expanding the company’s user base, improving traffic, hotel shoppers and profits.
TripAdvisor has an aggressive merger and acquisition strategy. In June, the company acquired a flight and airport information mobile app, GateGuru, following the acquisition of TinyPost in March, JetSetter in April and CruiseWise in May. The acquisitions have helped the company to build a desired portfolio, enhance its product line, boost its top line and position itself in markets with better growth prospects.
TripAdvisor continues to witness robust top-line growth in every quarter. The company delivered decent first-quarter results. Both earnings and revenues were above the prior-year figures on the back of a strong global travel market. Revenues were $246.9 million, up 25.3% year over year, driven by improvement in all its product lines and continued strong hotel shopper growth. Over the long term, TripAdvisor is well positioned for growth, given its expanding user base, improving margins and increasing monetization of social and mobile platforms.
Currently, TripAdvisor has a Zacks Rank #3 (Hold). Other stocks that have been performing well and are worth considering include Texas Instruments (TXN - Free Report) , Microchip Technology Inc. (MCHP - Free Report) and Intersil Corp. (ISIL - Free Report) . All these stocks carry a Zacks Rank #2 (Buy).