Booking Holdings Stock Hits 52-Week Low - Here's Why

Core Viewpoint - Booking Holdings Inc. experienced a decline in stock price following multiple analyst firms lowering their price forecasts due to concerns over artificial intelligence potentially disrupting the traditional online travel agency model and affecting long-term growth [1] Earnings Performance - The company reported quarterly earnings of $48.80 per share, surpassing the analyst consensus estimate of $48.27 per share [2] - Quarterly sales reached $6.349 billion, exceeding the analyst consensus estimate of $6.130 billion [2] - For the first quarter, the company anticipates sales between $5.429 billion and $5.524 billion, compared to market estimates of $5.359 billion [2] Analyst Insights - RBC noted strong results with room nights, bookings, EBITDA, and EPS exceeding expectations, although first-quarter room nights and full-year margin guidance fell short of Street estimates [3] - The analyst highlighted that room nights growth was driven by acceleration in the U.S. and easing concerns over AI disruption, with loyalty and direct bookings remaining robust [3] - Nearly 90% of Booking.com room nights are non-chain, which limits aggregation risk [3] Management Commentary - Management's focus on search and merchant-of-record strengths is seen as constructive, despite a $700 million reinvestment impacting leverage [4] - The analyst from Davidson reiterated the rating based on strong results, indicating upside to guidance and consensus across all key metrics [4] Regional Performance - Room nights accelerated due to broad strength across regions, particularly in Asia and the U.S., with the latter benefiting from a tough comparison and strength in paid channels and B2B [5] - Management's commentary emphasized resilient underlying travel demand, although U.S. average daily rates (ADRs) and length of stay showed slight declines [5] Stock Performance - Booking Holdings shares fell by 8.78% to $3,895.00, marking a new 52-week low according to Benzinga Pro data [6]