Core Viewpoint - Booking Holdings has experienced a significant decline in stock value, losing 20% since the beginning of the year and 27% from its June high, primarily due to investor concerns regarding AI and other challenges [1][2]. Current Stock Performance - Booking Holdings stock is currently in bear market territory, down more than 20%, which may present a buying opportunity ahead of the upcoming earnings announcement [2]. - The stock is nearing new 52-week lows, with no signs of a halt in the decline [5]. AI Concerns and Investments - Investor concerns about the impact of AI on the travel industry are influencing the stock's performance, despite Booking Holdings' significant investments in AI technology, including an in-house AI trip planner and partnerships with OpenAI [3]. - AI capabilities at kayak.com are designed to enhance user experience by allowing comparisons and filtering options through conversational language [3]. Revenue Forecasts - Analysts project a 17% revenue increase for Q4 and a 22% increase for 2025, exceeding the company's own forecast of 12% growth for the year [4]. - Although revenue growth is expected to slow to an estimated 18% in 2026, this still indicates sustained business performance rather than a decline [4]. Valuation Metrics - The current price-to-earnings (P/E) ratio of 28 is below the S&P 500 average of 30 and significantly lower than its 40 multiple from the previous summer [5]. - Analysts anticipate a forward P/E of 16, suggesting potential for substantial profit growth [5]. Long-term Investment Perspective - Despite concerns regarding AI's impact and the downward trend in stock price, Booking Holdings is positioned to maintain double-digit revenue growth rates, making it an attractive option for long-term investors [6].

Consumer Travel Trends - TSA expects to screen 185 million travelers this holiday weekend, with recent days ranking among the busiest in TSA history [1] - TSA hit a new all-time high a week ago Sunday, screening over 3 million people [3] - People like to travel and continue to spend, regardless of economic conditions [2] Booking Holdings' Strategy & Performance - Booking Holdings is investing heavily in generative AI to develop tools like the AI trip planner on Bookingcom [3][5] - Booking Holdings emphasizes its global presence, noting that the US is a small portion of its global business [7] - Regional events and geopolitical risks impact specific areas, but Booking Holdings' global reach mitigates overall impact, as travelers may shift destinations [9][10] AI and Technology in Travel - Travelers want help and assistance to ensure they're getting the best value for their trip [4] - AI is transforming the travel experience, offering assistance in location, translation, and overall ease of travel [3][5] - The use of AI in travel is continuously improving, with Booking Holdings aiming to be a leader in this area due to its scale and long-term investment [5]