Overblown AI Competition Worries Sees Rating Change for Booking Holdings (BKNG)

Core Insights - Booking Holdings Inc. (NASDAQ:BKNG) is recognized as one of the best consumer cyclical stocks, providing travel services through various platforms and managing over four million properties [1] - As of November 28th, 23 out of 39 analysts rated Booking Holdings Inc. as a Buy, with an average share price target of $6,207.21 [2] - Bank of America upgraded Booking Holdings Inc. to Buy from Neutral, maintaining a $6,000 price target, citing that concerns over AI competition were overstated [2] Analyst Recommendations - 23 out of 39 analysts recommend Booking Holdings Inc. as a Buy, with 5 Strong Buy and 11 Hold ratings [2] - The average price target for Booking Holdings Inc. is set at $6,207.21 [2] Market Position and Performance - Booking Holdings Inc. benefits from strong relationships with hospitality firms, allowing it to retain users and offer better deals compared to AI platforms [2] - Key performance metrics include better deals, margins, and revenue per available room, which are critical for the company's success [3] Earnings Insights - During the latest earnings call, management noted that traditional search traffic is still growing year-over-year, despite concerns about AI platforms [3] - The CFO highlighted that while leads from large language models are currently small, they are on the rise, indicating a potential hybrid future between traditional search and AI [3] - Early signals show improvements in search speed, conversion rates, cancellation rates, and customer satisfaction [3]