Booking Holdings (BKNG) stock plummeted 5.27% during intraday trading on Thursday, following a wave of analyst price target reductions from major financial institutions.
The sharp decline comes despite the company recently reporting upbeat fourth-quarter results that beat earnings and revenue estimates. However, this positive news was overshadowed by a series of downward revisions from Wall Street analysts.
Multiple firms, including Barclays, BofA, Deutsche Bank, JP Morgan, Piper Sandler, Wedbush, and Wells Fargo, cut their price targets on Booking Holdings. The collective analyst action reflects concerns about valuation and potential risks, including discussions around AI disruption in the online travel sector. Some analysts noted that while AI poses a theoretical risk, Booking's strong platform and customer relationships may offer a degree of shielding from such disruption.