Shares of Booking Holdings Inc. declined approximately 5% in extended trading on Monday, settling around $4,237. The drop occurred despite broader market gains, with the stock underperforming both major indexes and competitors such as Expedia.
Trading volume surged to 672,079 shares, significantly above the 50-day average of 250,322. The stock currently sits about 27% below its high reached in July 2025.
Earnings Anticipation Drives Volatility
Investor focus is squarely on the company's upcoming fourth-quarter and full-year 2025 results, scheduled for release after the market closes on February 18. A conference call is set for 4:30 p.m. ET. This pre-earnings period often sees increased trading activity and price swings as investors position themselves.
The online travel agency, which operates brands including Booking.com, Priceline, and KAYAK across more than 220 countries, is closely watched for metrics like gross bookings, room nights, and take rate. These figures provide insight into travel demand and the company's revenue generation.
Market Context and Risks
The decline comes amid a quiet macroeconomic backdrop, with Treasury yields showing little movement as traders await upcoming U.S. employment and inflation data. Sector-specific concerns include the potential for rising paid search costs and a shift in consumer preference toward more budget-conscious travel, which could pressure the entire online travel industry.
Investors will scrutinize management's commentary on early 2026 demand. A cautious outlook could extend the stock's recent weakness, while strong results and a steady forecast might quickly reignite buyer interest, assuming overall market sentiment remains supportive.
