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This Month's Exclusive Story Booking Holdings Split: The Catalyst Wall Street Didn't See ComingWritten by Chris Markoch. Publication Date: 2/19/2026. 
Key Points - Booking Holdings announced a 25-for-1 stock split following double-digit revenue and EPS growth in Q4 2025.
- Investors remain concerned that Alphabet’s AI-powered travel tools could bypass traditional booking platforms.
- Despite the sell-off, analysts and institutions still see meaningful upside supported by strong bookings growth and valuation discounts.
- Special Report: [Sponsorship-Ad-6-Format3]
Let's not bury the lead. Booking Holdings Inc. (NASDAQ: BKNG) announced a 25-for-1 stock split effective April 2. Stock splits don't change a company's intrinsic value, but BKNG shares trade for more than $3,900 each — a high price per share that creates friction for many retail investors. The split removes much of that friction and may invite stronger retail demand. The split announcement came as part of Booking's Q4 2025 earnings report. The company beat on both the top and bottom lines, reporting earnings per share (EPS) of $48.80 on revenue of $6.35 billion — increases of 17% and 16% year-over-year (YOY), respectively. Room nights rose 9% YOY, and gross bookings climbed 16% YOY to $43 billion. Booking also provided solid guidance for the current quarter, projecting revenue growth of 14% to 16% and adjusted EBITDA growth of 10% to 14%. On a constant-currency basis, management expects revenue growth of 7% to 9%, down from the 11% reported in the quarter just completed. A Strong Quarter Isn't Enough to Shake AI Fears Despite the positive results, BKNG shares fell 8.69% at the open on Feb. 19, the day after the report — reversing what had looked like a recovery from a bearish trend that began in July 2025. The stock is down about 26.5% in 2026 and is trading near its 52-week low. The pullback is partly attributable to concerns about the impact of artificial intelligence (AI). Some analysts warn Booking could be vulnerable to AI-driven disintermediation, where big tech companies — such as Alphabet Inc. (NASDAQ: GOOGL) — build agentic AI products that let consumers plan and book trips inside their ecosystems, bypassing intermediaries like Booking. In late 2025, Alphabet rolled out a major update to its AI Search/Travel Mode that enables AI agents to book trips directly within the Google ecosystem. A related worry is rising marketing spend: Booking has increased spending on sponsored links to retain online visibility as competition evolves. Booking's Real Moat: Data, Loyalty, and Friction-Free Booking The counterargument is that Booking can also harness AI to strengthen its existing business. The company has years — arguably decades — of consumer behavioral data, electronic connectivity with millions of accommodations, and a broad payments network. Those assets support a frictionless booking experience that travelers expect. New offerings from Google or others will need to give consumers a compelling reason to switch. If the experience is merely similar, users are unlikely to jump platforms unless the newcomer can deliver noticeably better outcomes or lower prices — a difficult proposition. Booking has substantial goodwill, and this quarter's results suggest it is leveraging that advantage effectively. Wall Street Lowers Targets But Hasn't Given Up on BKNG Analyst coverage on MarketBeat shows price targets moving lower in response to recent volatility, with many now sitting below the Street's consensus target — roughly $6,000. That consensus, however, remains more than 50% above the current share price, leaving significant upside in the near term if sentiment improves. Another positive sign: institutional activity, which was largely net selling by dollar volume for much of last year, showed signs of reversal in the most recent quarter. Buying volume of about $28 billion exceeded selling volume by nearly a 3:1 ratio. Combined, the strong quarter and the stock-split news could spur more buying in 2026. That brings us back to the split itself. A Long-Overdue Stock Split—But Timing Is Everything Booking has long been one of the market's most expensive single shares. This isn't primarily a valuation story — at roughly 20x next year's earnings, BKNG trades at a modest discount to its historical multiples and slightly below the S&P 500 on a forward basis. The key issue is the high price per share. Even after a drop of more than 25% this year, a >$3,900 share price remains a deterrent for many investors, especially those who prefer not to hold fractional shares. Many analysts have argued a split was overdue. That said, announcing the split while the stock is in a period of weakness could mute the initial market reaction. By contrast, companies such as Walmart Inc. (NYSE: WMT) have timed similar moves when shares were closer to 52-week highs, which can amplify positive sentiment.
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