Booking Holdings Shares Slide 8.8% As Analysts Cut Price Targets by Up to 23%
Booking Holdings posted Q4 earnings of $48.80 EPS on $6.35bn revenue, both exceeding consensus. Multiple analysts cut price targets by up to 23% citing AI disruption risks, sending shares down 8.8% to a 52-week low.
1. Analyst Price Target Cuts
Multiple brokerages including Piper Sandler, Cantor Fitzgerald, Benchmark, Oppenheimer and Wells Fargo lowered price forecasts by 7% to 23%, with targets cut from ranges of $6,600-$5,954 down to $6,000-$4,495 due to concerns that AI developments could disrupt the online travel agency model.
2. Q4 Earnings and Sales Beats
Booking Holdings reported Q4 EPS of $48.80 on revenue of $6.349 billion, each topping Street estimates of $48.27 and $6.130 billion respectively, driven by room nights growth, loyalty program strength and direct bookings.
3. First-Quarter Guidance and Outlook
Management forecasted first-quarter sales between $5.429 billion and $5.524 billion, above consensus of $5.359 billion, reflecting resilient travel demand despite potential AI-related traffic risks and slight dips in U.S. average daily rates and length of stay.
4. Stock Market Reaction
Shares slid 8.8% to a fresh 52-week low as investors weighed strong quarterly results against AI-driven headwinds and lowered price targets, signaling increased volatility in Booking Holdings stock.