What Happened?
Shares of online travel agency Booking Holdings (NASDAQ: BKNG) jumped 3.6% in the morning session after the company reported strong third-quarter financial results that surpassed Wall Street's expectations.
The online booking service posted adjusted earnings of $99.50 per share on revenue of $9.01 billion, both topping analyst forecasts. Key business metrics showed healthy growth, with room nights booked increasing by 8% and total gross bookings growing 14% from the prior year. Management noted seeing "continued momentum with steady travel demand trends" heading into the fourth quarter. While net profit margins saw a slight decline from the previous year, the company's overall performance was strong. Booking also shared updates on a test program with OpenAI, which could create a new way for customers to plan and book travel through ChatGPT.
After the initial pop the shares cooled down to $5,096, up 0.2% from previous close.
Is now the time to buy Booking? Access our full analysis report here.
What Is The Market Telling Us
Booking’s shares are not very volatile and have only had 2 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 23 days ago when the stock dropped 3.9% on the news that investors took a breather following a record-setting rally, with concerns over the Federal Reserve's next move and a prolonged government shutdown weighing on sentiment. The pullback came as the U.S. government shutdown extended into its second week, creating uncertainty in the market. Investors were also closely watching for signals from the Federal Reserve regarding its monetary policy. This combination of factors led to a cautious mood on Wall Street, causing traders to pause and reassess their positions after weeks of significant gains. Adding to the unease, Chief Economist at Moody's Analytics, Mark Zandi, warned that 22 states are already showing clear signs of a recession, placing the broader U.S. economy in a precarious position.
Booking is up 3.5% since the beginning of the year, but at $5,096 per share, it is still trading 12.4% below its 52-week high of $5,816 from July 2025. Investors who bought $1,000 worth of Booking’s shares 5 years ago would now be looking at an investment worth $3,141.
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