Booking Holdings Faces Stock Decline Amid AI Concerns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 04 2024
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Should l Buy BKNG?
Source: Coinmarketcap
Booking Holdings Inc. shares fell 6.4% as the company hit a 20-day low, reflecting investor anxiety over the impact of AI on online travel aggregators.
The decline is attributed to a cautious market outlook from UBS, which highlighted sluggish travel trends and the disruptive potential of AI technology. This has raised concerns about future performance, leading to significant stock volatility across the sector, with Booking Holdings experiencing a notable drop alongside competitors like Expedia and Airbnb. Despite these challenges, UBS analysts still favor Booking Holdings over its peers, indicating a more attractive future performance amidst current market dynamics.
The implications of these developments suggest that while Booking Holdings is facing immediate pressure from market conditions and AI-related concerns, its historical performance and analyst preferences may provide a foundation for recovery in the longer term.
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Analyst Views on BKNG
Wall Street analysts forecast BKNG stock price to rise
25 Analyst Rating
18 Buy
7 Hold
0 Sell
Moderate Buy
Current: 4140.600
Low
5407
Averages
6153
High
6850
Current: 4140.600
Low
5407
Averages
6153
High
6850
About BKNG
Booking Holdings Inc. is a provider of travel and restaurant online reservation and related services. The Company offers its services through five primary consumer-facing brands: Booking.com, Priceline, Agoda, KAYAK, and OpenTable. Through its brands, consumers can book an array of accommodations (including hotels, motels, resorts, homes, apartments, bed and breakfasts, hostels, and other alternative and traditional accommodation properties) and a flight to their destinations; make a car rental reservation or arrange for an airport taxi; make a dinner reservation; or book a vacation package, tour, activity, or cruise. Consumers can also use its meta-search services to easily compare travel reservation information, such as flight, hotel, and rental car reservations from hundreds of online travel platforms at once. Booking.com offers accommodation reservation services for approximately 4.0 million properties in over 220 countries and territories and in over 40 languages.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Earnings Release Schedule: Booking Holdings will release its Q4 and full year 2025 financial results on February 18 at 4:00 p.m. ET, emphasizing the company's commitment to transparency in financial reporting.
- Conference Call Announcement: The company will hold a conference call on the same day at 4:30 p.m. ET to discuss the financial results, indicating a desire to enhance investor engagement through direct communication.
- Webcast Availability: The earnings release and conference call will be webcast on the company’s website, with audio replays available for seven days post-event, ensuring investors have access to critical information at their convenience.
- Global Business Overview: As the world's leading online travel service provider, Booking Holdings operates in over 220 countries and territories, showcasing its extensive market influence and operational reach across the globe.
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- Revenue Growth Expectations: The anticipated Q4 revenue of $6.13 billion, representing an 11.5% year-over-year growth, indicates strong performance amid recovering travel demand, potentially laying a solid foundation for future growth.
- Historical Performance: Over the past two years, BKNG has consistently beaten EPS and revenue estimates 100% of the time, showcasing its accuracy in market analysis and forecasts, which enhances investor confidence in its future performance.
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- Earnings Release Schedule: Booking Holdings will release its Q4 and full year 2025 financial results on February 18 at 4:00 p.m. ET, emphasizing the company's commitment to transparency in financial reporting.
- Conference Call Announcement: The company will hold a conference call on the same day at 4:30 p.m. ET to discuss the financial results, indicating a desire to enhance investor engagement through direct communication.
- Webcast Availability: The earnings release and conference call will be webcast on the company’s website, with audio replays available for seven days post-event, ensuring investors have access to critical information at their convenience.
- Global Business Overview: As the world's leading online travel service provider, Booking Holdings operates in over 220 countries and territories, showcasing its extensive market influence and operational reach across the globe.
See More
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- Investor Behavior: The increase in stock futures was attributed to investors buying the dip following a recent selloff.
See More
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- Travel Predictions: Preliminary figures indicate that Beijing is expected to see 110 million trips during the Lunar New Year, with a staggering 9.5 billion trips nationwide, reflecting a strong desire for new experiences among China's 1.4 billion population and signaling economic recovery.
- Tourism Resurgence: Xishuangbanna reported over 4 million visits and tourism revenue of 5.04 billion yuan (approximately $730 million) during the holiday, demonstrating the resilience of local tourism markets in attracting visitors despite economic challenges.
- Theme Park Launch: iQiyi opened its first theme park in Yangzhou, featuring virtual reality and live performances to meet the rising demand for offline entertainment, positioning it as a new growth driver for the company amid fierce competition in the streaming market.
- Luxury Market Trends: Despite retail sales in China growing only 0.9% in December, Louis Vuitton opened two new stores in the past year, emphasizing the use of social media and celebrity endorsements to attract consumers, showcasing the resilience of luxury brands during the festive shopping season.
See More
Market Preview: Earnings Reports from Major Companies Ahead
- Earnings Reports: Carvana, DoorDash, and eBay are set to release their earnings on February 18, with particular attention on Carvana's sales growth amidst a busy market day.
- Booking Holdings Performance: Analysts expect Booking Holdings to report a 12% revenue growth in Q4, driven by stable global leisure demand and the expansion of alternative accommodations, while management must address the potential threat from AI travel planning tools.
- Energy Sector Update: Occidental Petroleum is announcing its Q4 results, with analysts predicting stable production from its core US onshore assets despite declining oil prices, which may pressure earnings and free cash flow.
- Macro Economic Data: The Federal Reserve will release minutes from its January FOMC meeting, with market participants looking for clues on inflation and labor market policies, while housing starts are forecasted at an annualized rate of 1.31 million and building permits at 1.4 million, indicating the impact of elevated rates on the housing market.
See More
Booking Holdings Q4 Earnings Preview: Strong Estimates Ahead
- Earnings Announcement Date: Booking Holdings is set to release its Q4 earnings on February 18 after market close, with a consensus EPS estimate of $48.67, reflecting a 17.1% year-over-year increase, which may bolster investor confidence in the company's profitability.
- Revenue Growth Expectations: The anticipated Q4 revenue of $6.13 billion, representing an 11.5% year-over-year growth, indicates strong performance amid recovering travel demand, potentially laying a solid foundation for future growth.
- Historical Performance: Over the past two years, BKNG has consistently beaten EPS and revenue estimates 100% of the time, showcasing its accuracy in market analysis and forecasts, which enhances investor confidence in its future performance.
- Estimate Revision Trends: In the last three months, EPS estimates have seen 10 upward revisions and 2 downward adjustments, while revenue estimates experienced 10 upward revisions and 1 downward, indicating analysts' optimistic outlook on the company's future performance, likely attracting more investor interest.
See More
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- Nasdaq Performance: The Nasdaq Composite ended its four-day losing streak today.
- Impact of AI Concerns: Despite the positive performance, concerns regarding AI continued to affect software stocks.
See More
