Wyndham's Partnerships with Google Raise OTA Concerns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 10 hours ago
0mins
Should l Buy BKNG?
Source: seekingalpha
- OTA Market Risks: Wyndham's partnerships with Google, Anthropic, and ChatGPT have raised investor concerns about the future of online travel agencies (OTAs), with BKNG and EXPE falling 7.7% and 2.2% respectively, indicating market anxiety over OTAs' survival in the AI era.
- Analyst Insights: BTIG analyst Jake Fuller highlighted that multiple hotel chains are collaborating with large language models (LLMs) for agentic bookings, leading investors to believe that hotel brands dominate the industry, which could result in OTAs being disintermediated, further exacerbating market unease.
- Market Reaction: With BKNG's Q4 earnings report on the horizon and poor performance expectations, combined with the AI risks facing OTAs, the stock price has significantly declined, reflecting investor concerns about future growth.
- Changing Competitive Landscape: Despite BKNG's limited exposure to hotel chains, Fuller believes that OTAs remain crucial partners in the industry due to their extensive supply chains, global payment networks, and substantial advertising budgets, suggesting potential new growth avenues through AI technology applications.
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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: 4269.990
Low
5407
Averages
6153
High
6850
Current: 4269.990
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.
Booking Holdings Shares Fall 8.1% Following Q4 Results as Several Brokerages Lower Price Targets
- Stock Performance: Booking Holdings shares fell by 8.1% following the release of their Q4 results.
- Analyst Reactions: Multiple brokerages have adjusted their price targets for the company in response to the earnings report.
See More
Booking Holdings Q4 Earnings Preview
- Earnings Release Announcement: Booking Holdings is set to release its Q4 earnings on February 18, with analysts projecting earnings per share of $48.67, a 25.5% increase from $41.55 a year ago, indicating sustained improvement in profitability.
- Revenue Growth Expectations: The quarterly revenue is expected to reach $6.13 billion, up 12.1% from $5.47 billion in the previous year, reflecting a recovery in travel demand and an increase in the company's market share.
- Executive Appointment: On February 3, Booking Holdings appointed Peer Bueller as CEO of KAYAK, a move that could drive strategic transformation and enhance KAYAK's competitiveness in the online travel market.
- Stock Price Fluctuation: As of Tuesday, Booking Holdings shares slipped 0.01% to close at $4,140.15, indicating cautious investor sentiment ahead of the earnings report despite overall positive market conditions.
See More
Booking Holdings Approves 25-for-1 Stock Split
- Stock Split Announcement: Booking Holdings' board approved a 25-for-1 stock split effective April 2, with shares trading on a post-split basis starting April 6, which is expected to attract more retail investors and enhance liquidity.
- Earnings Beat Expectations: The company's fourth-quarter revenue rose 16% to $6.3 billion, exceeding Wall Street's estimate of $6.13 billion, indicating strong market demand and growth potential, which is likely to bolster investor confidence further.
- AI Technology Investment: CEO Glenn Fogel stated that Booking Holdings plans to reinvest approximately $700 million in 2026 into generative AI and advertising, aiming to enhance user experience and personalization, thereby driving future revenue growth.
- Surge in Retail Sentiment: According to Stocktwits data, retail sentiment for Booking Holdings jumped from 'bullish' to 'extremely bullish', with message volumes increasing by 530%, reflecting strong investor optimism about the company's future performance.
See More
Booking Holdings Announces Historic Stock Split
- Stock Split Trend: Booking Holdings announced a 25-for-1 forward stock split effective April 2, reducing its share price from $4,007.45 to approximately $160, thereby making it more accessible for retail investors and enhancing its market appeal.
- Historical Performance: Since 1980, companies that have executed forward stock splits have averaged a 12-month return of 25.4%, more than double the S&P 500's return in the same period, highlighting the attractiveness and potential gains of stock splits for investors.
- Retail Investor Engagement: As retail investors account for an increasing share of trading volume on Wall Street, Booking's stock split not only makes its shares more affordable but also effectively attracts and retains retail investor participation, reflecting the company's keen understanding of market dynamics.
- Buyback Program Support: Since 2014, Booking Holdings has repurchased over 38% of its outstanding shares, and this ongoing buyback strategy significantly boosts earnings per share in the context of stable or growing net income, further solidifying the company's financial health and market position.
See More
US Stocks Close Lower Amid AI Outlook Concerns
- Market Weakness: The S&P 500 index fell by 0.28%, the Dow Jones Industrial Average decreased by 0.54%, and the Nasdaq 100 index dropped by 0.41%, indicating market concerns over the outlook for artificial intelligence, particularly affecting chipmakers and AI infrastructure stocks.
- Mixed Economic Data: Initial jobless claims in the US fell to 206,000, a 5-week low, indicating a strong labor market; however, the December trade deficit widened to $70.3 billion, exceeding expectations, reflecting uncertainties in economic recovery.
- Shifts in Fed Policy Expectations: Hawkish comments from Fed officials suggest a potential need for interest rate hikes to combat persistent inflation, leading to a more hawkish outlook for future rate paths, which further dampens market sentiment.
- Earnings Season Nearing Conclusion: With over three-quarters of S&P 500 companies reporting, 74% exceeded expectations, and Q4 earnings are projected to grow by 8.4%, demonstrating corporate resilience, yet the market remains cautious about future growth prospects.
See More
Booking Holdings Announces First-Ever 25-for-1 Stock Split
- Stock Split Announcement: Booking Holdings has announced a 25-for-1 stock split, set to take effect after market close on April 2, 2026, aimed at lowering the share price to attract more investors and enhance market liquidity.
- Strong Financial Performance: The company reported fourth-quarter revenue of $6.3 billion, a 16% year-over-year increase, with earnings per share of $44.22, up 38%, reflecting a robust business foundation and profitability despite concerns over future growth forecasts.
- Significant Cash Flow Growth: Operating cash flow and free cash flow surged by 107% and 120%, reaching $1.5 billion and $1.4 billion respectively, indicating substantial improvements in financial management and profitability, supporting future dividend increases.
- Market Reaction and Investor Sentiment: Although the stock fell 6.23% following the earnings report, the anticipation of the stock split keeps market sentiment optimistic, with historical data showing an average 25% price increase post-split, potentially attracting more investor interest in the stock.
See More
Booking Holdings Shares Fall 8.1% Following Q4 Results as Several Brokerages Lower Price Targets
- Stock Performance: Booking Holdings shares fell by 8.1% following the release of their Q4 results.
- Analyst Reactions: Multiple brokerages have adjusted their price targets for the company in response to the earnings report.
See More
Booking Holdings Q4 Earnings Preview
- Earnings Release Announcement: Booking Holdings is set to release its Q4 earnings on February 18, with analysts projecting earnings per share of $48.67, a 25.5% increase from $41.55 a year ago, indicating sustained improvement in profitability.
- Revenue Growth Expectations: The quarterly revenue is expected to reach $6.13 billion, up 12.1% from $5.47 billion in the previous year, reflecting a recovery in travel demand and an increase in the company's market share.
- Executive Appointment: On February 3, Booking Holdings appointed Peer Bueller as CEO of KAYAK, a move that could drive strategic transformation and enhance KAYAK's competitiveness in the online travel market.
- Stock Price Fluctuation: As of Tuesday, Booking Holdings shares slipped 0.01% to close at $4,140.15, indicating cautious investor sentiment ahead of the earnings report despite overall positive market conditions.
See More
Booking Holdings Approves 25-for-1 Stock Split
- Stock Split Announcement: Booking Holdings' board approved a 25-for-1 stock split effective April 2, with shares trading on a post-split basis starting April 6, which is expected to attract more retail investors and enhance liquidity.
- Earnings Beat Expectations: The company's fourth-quarter revenue rose 16% to $6.3 billion, exceeding Wall Street's estimate of $6.13 billion, indicating strong market demand and growth potential, which is likely to bolster investor confidence further.
- AI Technology Investment: CEO Glenn Fogel stated that Booking Holdings plans to reinvest approximately $700 million in 2026 into generative AI and advertising, aiming to enhance user experience and personalization, thereby driving future revenue growth.
- Surge in Retail Sentiment: According to Stocktwits data, retail sentiment for Booking Holdings jumped from 'bullish' to 'extremely bullish', with message volumes increasing by 530%, reflecting strong investor optimism about the company's future performance.
See More
Booking Holdings Announces Historic Stock Split
- Stock Split Trend: Booking Holdings announced a 25-for-1 forward stock split effective April 2, reducing its share price from $4,007.45 to approximately $160, thereby making it more accessible for retail investors and enhancing its market appeal.
- Historical Performance: Since 1980, companies that have executed forward stock splits have averaged a 12-month return of 25.4%, more than double the S&P 500's return in the same period, highlighting the attractiveness and potential gains of stock splits for investors.
- Retail Investor Engagement: As retail investors account for an increasing share of trading volume on Wall Street, Booking's stock split not only makes its shares more affordable but also effectively attracts and retains retail investor participation, reflecting the company's keen understanding of market dynamics.
- Buyback Program Support: Since 2014, Booking Holdings has repurchased over 38% of its outstanding shares, and this ongoing buyback strategy significantly boosts earnings per share in the context of stable or growing net income, further solidifying the company's financial health and market position.
See More
US Stocks Close Lower Amid AI Outlook Concerns
- Market Weakness: The S&P 500 index fell by 0.28%, the Dow Jones Industrial Average decreased by 0.54%, and the Nasdaq 100 index dropped by 0.41%, indicating market concerns over the outlook for artificial intelligence, particularly affecting chipmakers and AI infrastructure stocks.
- Mixed Economic Data: Initial jobless claims in the US fell to 206,000, a 5-week low, indicating a strong labor market; however, the December trade deficit widened to $70.3 billion, exceeding expectations, reflecting uncertainties in economic recovery.
- Shifts in Fed Policy Expectations: Hawkish comments from Fed officials suggest a potential need for interest rate hikes to combat persistent inflation, leading to a more hawkish outlook for future rate paths, which further dampens market sentiment.
- Earnings Season Nearing Conclusion: With over three-quarters of S&P 500 companies reporting, 74% exceeded expectations, and Q4 earnings are projected to grow by 8.4%, demonstrating corporate resilience, yet the market remains cautious about future growth prospects.
See More
Booking Holdings Announces First-Ever 25-for-1 Stock Split
- Stock Split Announcement: Booking Holdings has announced a 25-for-1 stock split, set to take effect after market close on April 2, 2026, aimed at lowering the share price to attract more investors and enhance market liquidity.
- Strong Financial Performance: The company reported fourth-quarter revenue of $6.3 billion, a 16% year-over-year increase, with earnings per share of $44.22, up 38%, reflecting a robust business foundation and profitability despite concerns over future growth forecasts.
- Significant Cash Flow Growth: Operating cash flow and free cash flow surged by 107% and 120%, reaching $1.5 billion and $1.4 billion respectively, indicating substantial improvements in financial management and profitability, supporting future dividend increases.
- Market Reaction and Investor Sentiment: Although the stock fell 6.23% following the earnings report, the anticipation of the stock split keeps market sentiment optimistic, with historical data showing an average 25% price increase post-split, potentially attracting more investor interest in the stock.
See More
