Online Travel Stocks Hit Hard by AI Concerns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 23 2026
0mins
Should l Buy BKNG?
Source: Benzinga
- Online Travel Stocks Plummet: Despite strong fourth-quarter performances from Booking Holdings, Expedia, and Tripadvisor, with Booking down 24%, Expedia down 27%, and Tripadvisor down 22%, the market is concerned about the future impact of AI on traditional travel agencies.
- Booking's Financial Performance: Booking reported fourth-quarter gross bookings of $40.2 billion and EBITDA of $2.2 billion, both exceeding expectations; however, the company anticipates slower profit growth and plans to invest approximately $700 million strategically by 2026, focusing on AI and other initiatives.
- Expedia's Aggressive Investment: Expedia's fourth-quarter bookings reached $27 billion and revenue $3.5 billion, both surpassing forecasts, with adjusted EBITDA of $848 million; management emphasized that while AI poses risks, the company's customer service and market share continue to grow.
- Uncertain Market Outlook: Despite the current stock slump, Booking and Expedia have 12-month price targets of $5,895 and $276, implying potential returns of 55% and 48%, respectively, suggesting that the market's fears of AI disruption may present investment opportunities.
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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: 154.480
Low
5407
Averages
6153
High
6850
Current: 154.480
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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