Concerns Over AI Impact Weigh on Booking and Expedia Stocks: Here's How They Could Recover.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 18h ago
0mins
Should l Buy BKNG?
Source: Barron's
- Current Weather Impact: Many people are considering tropical vacations due to the recent cold weather across the country.
- Travel Agency Challenges: Online travel agencies are facing stock issues linked to ongoing concerns about artificial intelligence.
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Analyst Views on BKNG
Wall Street analysts forecast BKNG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for BKNG is 6153 USD with a low forecast of 5407 USD and a high forecast of 6850 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
25 Analyst Rating
18 Buy
7 Hold
0 Sell
Moderate Buy
Current: 4443.420
Low
5407
Averages
6153
High
6850
Current: 4443.420
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.
Stock Market Endures AI Fears Despite Tech Downturn: A Creation of Our Own Design.
AI's Impact on the Stock Market: Investors are concerned that artificial intelligence, initially seen as a positive force, may now be causing instability in the stock market.
Dow Jones Milestone: Despite the concerns surrounding AI, the Dow Jones Industrial Average has reached a significant milestone, trading above 50,000 for the first time.
See More
Concerns Over AI Impact Weigh on Booking and Expedia Stocks: Here's How They Could Recover.
- Current Weather Impact: Many people are considering tropical vacations due to the recent cold weather across the country.
- Travel Agency Challenges: Online travel agencies are facing stock issues linked to ongoing concerns about artificial intelligence.
See More
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See More
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Online Travel Aggregators Face AI Disruption
- Cautious Market Outlook: UBS expresses a cautious outlook for online travel aggregators ahead of Q4 results due to sluggish travel trends and the ongoing impact of AI technology, heightening investor concerns about future performance.
- Escalating AI Impact: A Harvard Business Review study highlights that AI-driven search engines are mimicking OTA services, increasing customer acquisition costs and undermining their market dominance, leading to reduced cross-selling opportunities and weakened network effects.
- Significant Stock Volatility: Expedia (EXPE) shares have dropped 8%, followed by Booking Holdings (BKNG) at 6.4% and Airbnb (ABNB) at 5%, reflecting investor anxiety over AI risks, with UBS analyst Stephen Ju indicating no material shift in this debate is expected this year.
- Shifting Investment Preferences: Despite Booking Holdings (BKNG) having its risks already priced in, UBS analysts favor its shares over Expedia (EXPE), Tripadvisor (TRIP), and Trivago (TRVG), suggesting that its future performance appears more attractive amidst the current market dynamics.
See More
Stock Market Endures AI Fears Despite Tech Downturn: A Creation of Our Own Design.
AI's Impact on the Stock Market: Investors are concerned that artificial intelligence, initially seen as a positive force, may now be causing instability in the stock market.
Dow Jones Milestone: Despite the concerns surrounding AI, the Dow Jones Industrial Average has reached a significant milestone, trading above 50,000 for the first time.
See More
Concerns Over AI Impact Weigh on Booking and Expedia Stocks: Here's How They Could Recover.
- Current Weather Impact: Many people are considering tropical vacations due to the recent cold weather across the country.
- Travel Agency Challenges: Online travel agencies are facing stock issues linked to ongoing concerns about artificial intelligence.
See More
Wall Street Analysts Adjust Ratings
- Analyst Rating Updates: Top Wall Street analysts have adjusted their ratings on several companies, indicating a shift in market sentiment that could influence investor decisions and market trends.
- Overview of Changes: The rating changes include upgrades, downgrades, and initiations, reflecting analysts' keen response to market dynamics, which may lead to short-term volatility in the affected stocks.
- Investor Focus: For those considering buying PYPL stock, analysts' opinions will serve as a crucial reference point, impacting their investment strategies and risk assessments.
- Market Impact Analysis: Changes in analyst ratings not only affect individual stock performance but may also influence overall market sentiment, prompting investors to closely monitor these developments to adjust their portfolios accordingly.
See More
Latest Wall Street Rating Updates
- AMD Rating Reaffirmed: Barclays reiterates its overweight rating on AMD, citing the company's growing share in the PC and server markets, alongside significant spending potential from clients like OpenAI, indicating strong future growth in AI.
- Airbnb Upgrade: Citizens upgrades Airbnb from market perform to market outperform with a price target of $160, anticipating multiple upcoming catalysts that could drive the stock beyond current expectations.
- GE Vernova Rating Recovery: Baird upgrades GE Vernova from neutral to outperform, asserting that concerns about capacity are overblown and that the energy infrastructure cycle is still in its early stages, positioning GE Vernova as a key beneficiary.
- Broadridge Financial Upgrade: DA Davidson raises Broadridge's rating from hold to buy, arguing that the recent 30% decline in shares presents a buying opportunity, maintaining a price target of $228 as the sell-off is seen as excessive.
See More
US Stocks Close Lower as Tech Sector Retreats
- Market Decline: The S&P 500 index fell by 0.84%, the Dow Jones by 0.34%, and the Nasdaq 100 by 1.55%, indicating a sharp sell-off after reaching record highs, which negatively impacted investor sentiment.
- Tech Sector Retreat: Data service and software stocks plummeted following the release of an automation tool by AI firm Anthropic, with Thomson Reuters and EPAM Systems down over 15% and 13% respectively, reflecting a loss of confidence in tech stocks.
- Precious Metals Rally: Gold prices surged over 6% and silver over 8%, leading to gains in mining stocks, with Hecla Mining and Freeport McMoRan rising more than 8% and 6% respectively, indicating increased demand for safe-haven assets.
- Economic Outlook Improvement: Richmond Fed President noted an improving US economic outlook despite ongoing risks, with markets focusing on upcoming economic data and the passage of a spending bill to gauge future economic trends.
See More
Online Travel Aggregators Face AI Disruption
- Cautious Market Outlook: UBS expresses a cautious outlook for online travel aggregators ahead of Q4 results due to sluggish travel trends and the ongoing impact of AI technology, heightening investor concerns about future performance.
- Escalating AI Impact: A Harvard Business Review study highlights that AI-driven search engines are mimicking OTA services, increasing customer acquisition costs and undermining their market dominance, leading to reduced cross-selling opportunities and weakened network effects.
- Significant Stock Volatility: Expedia (EXPE) shares have dropped 8%, followed by Booking Holdings (BKNG) at 6.4% and Airbnb (ABNB) at 5%, reflecting investor anxiety over AI risks, with UBS analyst Stephen Ju indicating no material shift in this debate is expected this year.
- Shifting Investment Preferences: Despite Booking Holdings (BKNG) having its risks already priced in, UBS analysts favor its shares over Expedia (EXPE), Tripadvisor (TRIP), and Trivago (TRVG), suggesting that its future performance appears more attractive amidst the current market dynamics.
See More
