Booking Holdings Plummets 4.94% to 28th in Volume Amid Mixed Earnings and Bearish Momentum

Market Snapshot

Booking Holdings (BKNG) closed 2026-02-09 with a 4.94% decline, marking its worst single-day drop since December 2024. The stock traded at $4,457.17, with a trading volume of $2.87 billion, ranking 28th in market activity for the day. Despite the sharp decline, the company reported strong Q2 2025 results earlier in the month, including a 16% year-over-year revenue increase to $6.8 billion and an 8% growth in room nights. However, the stock closed 2.08% lower on the earnings report, with technical indicators such as RSI (25.17) and MACD (-165.64) signaling oversold conditions and bearish momentum.

Key Drivers

The recent selloff in BKNG stock reflects a combination of mixed earnings response, institutional positioning, and broader market sentiment. While the company exceeded Q2 2025 earnings estimates by 10.49% and reported robust revenue growth, the market reacted negatively to its full-year guidance. The firm projected "low double-digit" growth in bookings and revenue, which, while positive, fell short of the high teens growth seen in prior periods. Additionally, the outlook for adjusted EBITDA margin expansion of approximately 125 basis points was viewed as insufficient to offset concerns about rising costs from heavy investments in AI and digital transformation. These investments, while positioned to drive long-term growth in alternative accommodations and connected trips, may weigh on short-term profitability.

Institutional activity highlights both optimism and caution. Canada Post Corp’s Registered Pension Plan increased its stake by 31.8% in Q3 2025, while Norges Bank added a $2.21 billion position in Q2 2025. However, insiders sold 3,124 shares worth $16.19 million in the past three months, including CEO Glenn Fogel’s $4.94 million transaction. The institutional ownership of 92.42% underscores strong conviction but also raises questions about liquidity constraints during volatile periods. Analysts remain divided, with a "Moderate Buy" consensus and a $6,180 average target price, but Wedbush’s recent price target cut from $6,000 to $5,500 and a short-interest anomaly (zero shares reported) introduced uncertainty.

Technical indicators reinforce bearish sentiment. The stock is trading below all major moving averages (5-day to 200-day), with RSI and MACD in sell territory. Pivot points suggest resistance at $4,625–$4,789 and support at $4,258–$4,351, indicating a potential consolidation phase. The 52-week range of $4,096.23–$5,839.41 highlights the stock’s volatility, with the current price near the lower end. Despite oversold signals from RSI and stochastic indicators, the broader trend remains downward, as evidenced by the bearish ADX (45.36) and negative CCI (-190.58).

The earnings report itself contained conflicting signals. While Q2 results demonstrated resilience in core metrics—room nights up 8% and gross bookings up 13%—the stock’s post-earnings performance (down 2.08% at close) suggests skepticism about sustainability. The company’s emphasis on AI-driven innovation and alternative accommodations aligns with long-term growth strategies but may not immediately offset near-term margin pressures. Meanwhile, the lack of dividend growth (unchanged at $9.60 per share) and mixed analyst ratings (27 Buys, 10 Holds) reflect divergent views on valuation.

In summary, BKNG’s decline stems from a combination of tempered earnings guidance, technical bearishness, and institutional dynamics. While institutional buying and long-term growth initiatives offer support, near-term challenges—including margin expansion hurdles and analyst caution—weigh on investor sentiment. The stock’s path forward will likely depend on execution of its AI and digital transformation roadmap and alignment of guidance with investor expectations.