BofA’s Hartnett says concentrated U.S. stock returns are likely to persist
On Friday, BTIG maintained a neutral stance on Booking Holdings (NASDAQ:BKNG) stock, in light of the company's third-quarter guidance which fell below market expectations, similar to its online travel agency peers.
The guidance suggested a slowdown in Europe, raising questions about whether this reflects a conservative forecast from management or indicates a broader trend.
Booking Holdings' reservation volume showed a deceleration, with a slight improvement in August compared to July. The firm's quarter-to-date tracking indicated a modest increase of 1.4% in reservation volume, with a 1% rise in July and 2% for the first twelve days of August. This contrasts with a 3% growth observed in the second quarter.
The analysis further revealed that room nights have been performing better than reservations, suggesting an approximate 5% growth quarter-to-date, which aligns with Booking Holdings' own growth forecast of 3-5%. This data is corroborated by site traffic and credit card information, indicating a broader moderation in the travel sector rather than an issue specific to Booking Holdings.
BTIG's assessment is based on various indicators, including site traffic and credit card data, which reflect trends not only in online travel agencies but also in hotel chains. These indicators support the view that the travel industry as a whole is experiencing a slowdown.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.