Booking Shares Drop 7.4% After Q4 Revenue Beat and Slowing Growth Forecast
Shares of Booking fell 7.4% after its fourth-quarter revenue of $6.35 billion rose 16% year-on-year and EBITDA topped expectations, while adjusted EPS of $48.80 matched estimates. Analysts forecast revenue growth slowing to 8.6% next year versus a 16.3% three-year CAGR, fueling investor concerns.
1. Q4 Financial Highlights
Booking reported fourth-quarter revenue of $6.35 billion, up 16% year-on-year and exceeding forecasts, and delivered adjusted earnings per share of $48.80 in line with expectations. EBITDA performance also outpaced estimates, reflecting sustained travel demand.
2. Forward Growth Outlook
Analysts now anticipate revenue growth decelerating to 8.6% over the coming year compared with a 16.3% compound annual growth rate over the past three years, raising concerns about demand headwinds. This projection prompted the market to push shares down 7.4% in early trading.
3. Recent Stock Performance
The stock has declined 25.5% year-to-date and trades 31.8% below its 52-week high of $5,816, marking only its third intraday move greater than 5% over the past year. This volatility highlights heightened sensitivity to forward guidance.