Booking Holdings (BKNG, Financial) is trading nearly flat despite reporting impressive Q1 results. Revenue and adjusted EBITDA surpassed the high end of previous guidance. However, BKNG's Q2 revenue guidance remains in line with expectations. Some metrics and cautious commentary are slightly dampening the strong results.

• Q1 metrics show room nights grew 7.2% year-over-year to 319 million, marking the first time BKNG exceeded the 300 million mark. Although this surpassed prior guidance, growth was lower than Q3 (+8.1%) and Q4 (+13.2%). Rental car days showed a similar trend, while airline ticket growth was 44.8% to 16 million units, down from Q4 year-over-year.
• BKNG is optimistic about its Q1 results and the stability of Q2 trends but acknowledges geopolitical and macroeconomic uncertainties. Concerns about consumer demand persist, but BKNG's global diversification is seen as a strength to navigate potential changes. The company remains confident in the long-term travel industry outlook.
• Changes in travel patterns were noted, such as a moderation in inbound travel to the US, particularly from Canada and Europe. However, improvements in other travel corridors led to stable growth overall.
• There was a year-over-year increase in the global length of stay, but a decrease in the US, possibly indicating cautious spending by US consumers. BKNG expects stable travel demand in Q2, though this could change.

Overall, BKNG's business is stable in the near term, but the company remains cautious, impacting other travel stocks like Airbnb (ABNB, Financial) down 4.5% and Expedia (EXPE, Financial) down 3.6%.