New York, Feb 5, 2026, 12:40 EST — Regular session
- Shares of Booking Holdings dropped roughly 1.6% during midday trading
- Citizens singled out AI as a structural threat to online travel agencies, but Mizuho took a more optimistic stance
- Booking’s upcoming earnings report later this month has investors focused on what’s next
Shares of Booking Holdings dipped 1.6% to $4,534.04 on Thursday, as investors grappled with a new divide among analysts over whether artificial intelligence might pressure the profit margins of online travel booking platforms.
The debate has escalated quickly. Some analysts believe AI tools will consolidate multiple search and booking tasks into one chat-style interface, potentially bypassing parts of what online travel agencies handle — and the fees they earn.
Booking’s shares have swung sharply this week, and investors are weighing if the newest AI-fueled concerns pose a genuine risk to long-term growth or if it’s just another scare in an expensive market.
Citizens analyst Matthew Condon cut Booking Holdings to “Market Perform” from “Outperform,” citing AI as a “potential structural risk” to the economics of online travel agencies—companies like Booking.com that sell hotel rooms and travel services online. TipRanks
Mizuho’s Lloyd Walmsley took the opposite stance, upgrading Booking from “Neutral” to “Outperform” while keeping his $6,000 price target steady. He described the recent dip as a setup featuring a “compelling 2.7x bull/bear skew.” TipRanks
Booking is doubling down on AI in its latest shakeup. Peer Bueller will step in as CEO of KAYAK, while KAYAK co-founder and current CEO Steve Hafner moves to executive chair. Hafner will also take on a new role at Booking aimed at pushing forward AI innovation.
A separate filing revealed that director Robert J. Mylod Jr. sold 40 shares via Annox Capital, LLC on Feb. 2, mostly at prices just over $5,000 per share. The transactions were executed under a Rule 10b5-1 plan, a pre-set trading strategy companies use to address insider trading concerns.
The broader market offered no relief. U.S. stocks dropped earlier this week amid concerns that AI might erode competitive advantages and squeeze margins in some tech segments, pushing the Nasdaq down 1.43% on Tuesday, Reuters reported.
Travel stocks showed a mixed picture Thursday: Airbnb slipped roughly 2.1% by midday, Expedia held steady, and Trip.com edged up around 0.6%.
The downside is clear. Should AI-powered search and itinerary apps tilt bargaining power toward platforms controlling the user interface, online travel agencies might see growth slow or need to boost spending just to maintain traffic—even if travel demand stays strong.
Booking is set to release its fourth-quarter and full-year 2025 earnings around 4:00 p.m. ET on Feb. 18, with a conference call kicking off at 4:30 p.m. ET. This report will probably shape investor views on travel demand and the company’s AI strategy.
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