NEW YORK, Feb 24, 2026, 11:30 EST — Regular session
- Booking Holdings shares climbed roughly 4.6% in late morning trading following an upgrade from Morgan Stanley.
- The stock dropped roughly 5% in the previous session, with online travel names under pressure from renewed AI disruption chatter.
- Investors remain focused on whether the rebound can stick, with the debate ramping up around “agentic” AI tools.
Booking Holdings Inc bounced back on Tuesday, its stock up roughly 4.6% to $4,048, regaining some ground lost in the previous session. Morgan Stanley’s upgrade helped fuel the move for the online travel giant. (Source: Marketscreener)
This call is drawing attention, given how the stock’s been volatile lately. Investors are watching for signs that AI “agents” — software that handles complex actions like booking travel — might threaten online travel agencies, which rely heavily on paid marketing to attract users.
The previous day saw a sell-off across the sector, as traders seized on the idea that AI-powered changes in shopping habits might upend control of the booking funnel—and shift the burden of paying for traffic.
Morgan Stanley bumped Booking up to overweight from equal-weight, though it trimmed the price target to $5,500, down from $6,150. Analyst Brian Nowak argued that Booking’s large scale and rich customer data will keep it “a key driver of travel even as agentic tools evolve.” (Source: Investing)
Nowak pointed out that “agents also need” Booking’s inventory. Early-stage travel agents, he said, are still sending users to OTA sites to finish purchases instead of letting them check out within the agent itself, the note showed.
Booking shares dropped 5.05% Monday, settling at $3,870.83. Still, that was a milder slide than what hit some of the other travel names in a broadly weak session for equities. Trading volume crossed 776,000—more than twice the typical 50-day level. According to MarketWatch, the stock is lingering about a third under its 52-week high. (Source: Marketwatch)
Monday’s broader slump came after a Citirini Research note outlined how AI agents could put together full travel itineraries faster and for less than current platforms by late 2026, per Investing.com. Airbnb shares slid roughly 6%, with Expedia down about 8% in the same session, according to the report. (Source: Investing)
Booking shares have seesawed since last week’s quarterly results. The company posted better-than-expected profits and projected gains in gross bookings, but flagged hints of more hesitant U.S. travelers—think slightly shorter stays and a dip in average daily rates. (Source: Reuters)
The board gave the green light to a 25-for-1 stock split of its authorized shares, set to take effect April 2, 2026. (Source: Fortune)
The AI debate isn’t fading. Say travel agents begin handling bookings right from their own platforms — or suppliers ramp up efforts to direct customers — online travel agencies might get hit with steeper marketing bills, squeezed pricing power, or both.
Traders are eyeing whether Tuesday’s rebound catches on throughout the sector, and if additional brokers start flagging the “agentic” risk before Booking’s April 2 stock split.
