Booking Hlds (BKNG) Stock Forecast & Price Target

Booking Holdings has demonstrated solid financial performance, with adjusted EPS growth exceeding 20%, marking an improvement from previous high teens growth rates, and adjusted EBITDA margins increasing by 180 basis points year-over-year. The company also reported positive year-on-year growth in room nights across various regions, notably in the U.S., where growth accelerated, supported by strong merchant revenues and effective marketing leverage. Additionally, the adoption of AI applications and the continued expansion of ConnectedTrip transactions, which grew in the mid-20% range, indicate a robust demand for Booking’s services and a strong competitive position in the online travel agency market.

The analysis identifies several fundamental concerns regarding Booking Holdings's stock. First, the company faces growing pressure due to its expansion into lower-margin categories, such as air travel, which may negatively impact its take-rate and profit margins. Additionally, regulatory risks stemming from the EU's Digital Services Act and potential macroeconomic downturns could further complicate the business environment, amplifying the challenges associated with achieving consistent revenue growth in a cyclical travel industry.