New York, Feb 4, 2026, 12:44 EST — Regular session
- Booking Holdings shares dropped roughly 2% by midday, adding to a steep decline over the past two days
- Analysts remain divided on whether AI-powered travel search presents an immediate challenge or a buying opportunity
- Investors are gearing up ahead of the company’s Feb. 18 earnings and outlook release
Booking Holdings Inc’s common stock (BKNG) dropped roughly 2% on Wednesday, hovering near $4,541 midway through the session as new analyst notes sparked debate over AI’s impact on travel search.
The decline comes after a widespread selloff in travel-booking stocks the previous day. Bloomberg Intelligence pointed to Google’s AI travel planner as a threat to booking platforms. On Tuesday, Expedia slid over 15%, while Booking lost more than 9%, according to Nasdaq.com.
The timing is critical as Booking approaches its earnings with investor nerves on edge. The company will release its fourth-quarter and full-year 2025 financial results on Feb. 18, followed by a conference call that afternoon.
Citizens Bank analysts downgraded Booking from “market outperform” to “market perform,” citing a “limited set of near-term catalysts to meaningfully accelerate growth.” They flagged AI as a longer-term threat that might “collapse the traditional travel funnel into a single, conversational interface.” This shift could pressure “take rates” — the commission the platform earns on each booking — by ramping up competition among online travel agencies. Investing.com Australia
Mizuho flipped its stance on Booking, raising its rating to “outperform” from “neutral” and setting a $6,000 price target. The bank dismissed concerns that generative AI will divert bookings from online travel agencies as “overblown,” according to an Investing.com report.
UBS maintained its Buy rating but lowered the price target slightly to $6,608 from $6,806. The adjustment still points to a significant upside from the current stock level, keeping some optimism alive among bullish analysts.
Booking revealed leadership shifts at KAYAK, one of its travel brands. Peer Bueller steps in as CEO, while co-founder Steve Hafner moves to executive chair and takes on a new role at Booking aimed at driving AI innovation, the company said.
Booking runs several online travel brands like Booking.com, Priceline, Agoda, KAYAK, and OpenTable. Its revenue mainly comes from transaction fees and commissions linked to hotel and travel service reservations.
Traders are closely monitoring if the chatter around AI-powered travel discovery will fade or intensify, while also waiting to see if upcoming broker notes will alter expectations once more.
Booking’s next major event comes Feb. 18, when it reports earnings and offers its outlook on 2026 demand. That update could determine if this week’s drop was just a pause or the beginning of a bigger downturn.
