Booking.com has a problem

While Booking Holdings’ ticked all the boxes with its 2023 earnings, its projected 7% growth for 2024 sharply contrasts with last year's 24%

After the post-pandemic travel surge, “of course travel demand is going to moderate down,” the company said, and it’s important for investors to look at the long-term growth potential of the company as travel demand remains historically strong, and Booking invests in new product developments, including general artificial intelligence.

Key takeaways

• But investors are also looking at geopolitical headwinds and the challenges they could inflict on the travel industry in the near term, as the OTA warned of the impact of the conflict in the Middle East in its earnings report;
• J.P. Morgan analyst Doug Anmuth wrote "we believe a travel normalization was largely expected for 2024, but given the recent stock move and elevated expectations, the deceleration is steeper than expected;"
• Booking Holding's stock plunged 18% - its biggest daily drop in nearly four years - after it said revenue would moderate in 2024.

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