New York, Feb 4, 2026, 19:09 ET — After-hours update.
- Shares of Booking Holdings slipped after the bell, adding to a volatile week for online travel stocks.
- Citizens downgraded its rating on Booking, cautioning that AI might transform the way travelers search and book trips.
- The company will release its fourth-quarter and full-year earnings on Feb. 18.
Booking Holdings Inc shares dipped 0.8% to $4,607.13 in after-hours trading Wednesday, following a volatile session. Earlier, the stock fluctuated between $4,375 and $4,655, data showed.
The late-day drop came after Citizens Bank downgraded Booking from “market outperform” to “market perform.” Analysts Matthew Condon and Andrew Boone pointed to a sparse pipeline of near-term growth drivers and longer-term AI risks. They warned AI might “collapse the traditional travel funnel” — turning the usual search-to-booking steps into a single chat interface. That shift could force online travel agencies (OTAs) to compete over less lucrative parts of the booking process. (Investing.com Canada)
The debate comes just as investors gear up for Booking’s next earnings report, a major highlight in the sector’s calendar. Booking is set to release its fourth-quarter and full-year 2025 results after the U.S. markets close on Feb. 18, with a webcast scheduled to follow, according to the company. (Nasdaq)
The stock has faced selling pressure since Tuesday, dropping 9.3% to $4,644.64 amid a broad downturn that also dragged down Expedia, Trip.com, and Tripadvisor. Booking’s trading volume surged well beyond its recent average, closing about 20% below its 52-week high, according to MarketWatch data. (MarketWatch)
Wall Street isn’t unified. KeyBanc’s Sergio Segura stuck with an overweight rating on Booking but lowered his price target slightly to $6,500 from $6,630. He described the travel environment as “healthy” and dismissed AI disruption worries as “overstated.” Segura also highlighted major global events as a potential boost. (Streetinsider)
The core issue is straightforward: who controls the customer once search shifts? As travel planning shifts toward AI chat tools, OTAs might have to shell out more to maintain visibility — or strike agreements to supply inventory to those platforms.
Booking and similar companies earn revenue by serving as intermediaries for travel providers. The crucial factor is the commission, or “take rate,” that the platform retains from each booking.
Right now, traders want straightforward answers for February: what management has to say about spring demand, how pricing is faring, and if marketing budgets are ramping up to maintain traffic.
They’ll also pay close attention to how Booking positions AI — whether as a risk to distribution and margins or as a means to boost conversion and cut customer acquisition costs.
The downside is clear: if travel demand weakens or consumers cut back on discretionary spending, bookings could drop fast. Then, the AI debate will take a backseat when it comes to the stock’s prospects.
The next major catalyst comes with the Feb. 18 report, where Booking’s guidance and any insights into 2026 booking trends will probably dictate the direction for BKNG’s next move.
