Booking Holdings Drops 24% in February Despite $40.2B Q4 Bookings and $700M AI Spend
Booking Holdings shares have plunged 24% month-to-date, marking their worst monthly performance since May 2010 despite robust travel demand. The company reported $40.2 billion in fourth-quarter gross bookings, $2.2 billion in EBITDA and announced $700 million strategic reinvestments focused on generative AI and loyalty expansion.
1. Steep Monthly Share Decline
Booking Holdings shares fell 24% month-to-date, marking the steepest monthly drop since May 2010 as investors price in potential AI disruption to online travel agency models. Peers Expedia and Tripadvisor also saw declines of roughly 27% and 22% respectively over the same period.
2. Fourth-Quarter Earnings Beat
In the fourth quarter, Booking delivered $40.2 billion in gross bookings, a 16% year-over-year increase, and generated $2.2 billion in EBITDA, both figures topping consensus estimates, while room-night growth reached 9%.
3. Strategic AI Reinvestment
For 2026, the company outlined $700 million in strategic reinvestments—with a net $300 million EBITDA impact—aimed at generative AI development, its Connected Trip initiative, fintech expansion, loyalty program growth and broader geographic expansion.