Booking CEO, analysts bullish even as stocks land on worst-performing lists of the day – CNET – ApparelGeek

Shares of Booking Holdings Inc. matched their longest consecutive six-day losing streak on Thursday, ending the day sharply lower as Russia’s invasion of Ukraine weighed the company the heaviest among its peers in the travel industry.

Shares of Booking Holdings BKNG,
closed at $2,295.00, down $174.83, or 7.08%, and was the worst performer for the Nasdaq 100 for the day, as well as the second worst performer for the S&P 500.

Despite the uncertainty, Booking’s chief executive Glenn Fogel told CNET in an interview Thursday that he doesn’t expect travel trends to be drastically affected or changed. The company released its fourth-quarter financial results on Wednesday, including net profit and revenue that beat analysts’ expectations.

“The truth is that it probably won’t impact travel,” said Fogel, who added that he woke up to see “the tragedy and horror of what is happening in Ukraine” .

He acknowledged, however, that travel costs such as jet fuel could rise and affect ticket prices and more, although he said he still did not see that drop in demand.

Although Fogel said he thinks travelers will “continue to feel bad” about what’s happening in Eastern Europe, he stuck to the travel booking company’s outlook that Americans and Europeans will still want to travel as the COVID-19 pandemic wanes, and customers in Asia, which has seen a slower recovery from the pandemic, will follow. Like its competitors who have published results recently, including Expedia Group Inc. EXPE,
and Airbnb Inc. ABNB,
Booking cites pent-up travel demand and says it is encouraged by the summer bookings it has already seen.

As company executives said during Wednesday’s earnings call, Fogel reiterated that travel to Russia and Ukraine represents a single-digit percentage of his company’s business, whose brands include Priceline and Kayak. . But the company has significant business in Europe overall, with CFO David Goulding saying last year that before the pandemic, 50% of Booking’s business was in Europe, 30% in the US and 20% in Asia.

Analysts are mostly optimistic about Booking, although the company indicated this week that it plans to increase its spending on marketing and other initiatives, such as doubling down on its efforts to become a booking site. one-stop travel. Twelve analysts tracked by FactSet rate the stock as a buy, 12 say they hold and two consider the stock overweight.

See: Ukraine concerns hit travel stocks. The reservation stock has just been upgraded.

Expedia also saw its stock decline on Thursday, falling nearly 2.5% to $193.74. Meanwhile, shares of Airbnb rose around 5.5% to close at $158.26 and TripAdvisor Inc. TRIP,
edged up 0.4%, ending the day at $26.69.

See: Expedia optimistic about travel recovery, increasing stock despite mixed results

Also: Airbnb is doing better than before the pandemic

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Booking CEO, analysts bullish even as stocks land on worst-performing lists of the day – CNET – ApparelGeek