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 the intrinsic value of a company. However, BKNG stock trades for over $3,900 per share. That’s a lot of friction for retail investors. The split removes a significant amount of that friction and may invite strong retail sentiment.
The stock split announcement was part of Booking’s Q4 2025 earnings report. The company beat on the top and bottom lines with earnings per share (EPS) of $48.80 on revenue of $6.35 billion. Those numbers were 17% and 16% higher on a year-over-year (YOY) basis. Another highlight of the report was that room nights were up 9% YOY, and the company’s gross bookings were up 16% YOY to $43 billion.
Booking also delivered solid guidance for the current quarter. It projects revenue growth between 14% and 16% and adjusted EBITDA growth between 10% to 14%. On a constant-currency basis, revenue growth would be between 7% and 9%, lower than the 11% generated in the current quarter.
A Strong Quarter Isn't Enough to Shake AI Fears
Despite the positive headline news, BKNG stock dropped 8.69% at the market open on Feb. 19, the day after Booking reported. That reverses what looked like a recovery from a bearish trend that started in July 2025. The stock is down 26.5% in 2026 and is trading near a 52-week low.
The pullback has been due, in part, to concerns over the impact of artificial intelligence (AI) on the company’s business. Specifically, some analysts believe that Booking may be prone to AI disintermediation. That means that big tech companies, such as Alphabet Inc. (NASDAQ: GOOGL), that are leading in agentic AI could create products and services that bypass companies like Booking entirely.
For example, Alphabet launched a significant update to its AI Search/Travel Mode in late 2025. This update allows AI agents to book trips for travelers inside the Google ecosystem.
A secondary concern is the impact this has on Booking’s marketing spend. The company has been increasing its spending on sponsored links to maintain its online visibility.
Booking's Real Moat: Data, Loyalty, and Friction-Free Booking
The counterargument for investors is that Booking will be able to use AI to enhance its existing business model. The company has years, if not decades, of consumer behavioral data, electronic connectivity with millions of accommodations, and a vast payment network. All of which creates a frictionless experience for travelers, and one they’ve grown accustomed to using.
The advantage that Booking may have is that offerings such as the one from Google will have to give consumers a reason to shift. If it’s the same experience on a different platform, that won’t be enough, unless they can provide the trip for a lower price, which is dubious.
Booking has years of goodwill built up. The quarter’s results show that it’s using that capital wisely.
Wall Street Lowers Targets But Hasn't Given Up on BKNG
The Booking Holdings analyst forecasts on MarketBeat show that analysts are wasting no time rendering their opinion on BKNG stock. For now, price targets are being lowered, with many coming in below the Street’s consensus price target—around $6,000.
Still, that consensus price is more than 50% above the stock’s price as of this writing. That leaves plenty of room for stock price growth in the short term.
Another encouraging sign is that institutional ownership, which has been exceedingly bearish by dollar volume for most of last year, showed signs of reversing that trend in the just-completed quarter. Buying volume of around $28 billion eclipsed selling volume by nearly a 3:1 ratio.
The solid report, combined with news of the stock split, may be the trigger for more stock purchases in 2026. That brings us back to the stock split.
A Long-Overdue Stock Split—But Timing Is Everything
Booking has been one of the priciest stocks in the market. This isn’t about valuation. At around 20x next year’s earnings, BKNG stock is trading at a discount to itself as well as a slight discount to the S&P 500.
This is about the price per share. Even with the slide of over 25% this year, the stock trades for over $3,900 per share as of this writing. Many investors will simply find that to be too pricey for one share. Plus, many investors don’t want to own fractional shares.
Many analysts have felt a stock split was long overdue, and the news may have a negative impact in the short term, as Booking is making the announcement in a period of weakness. Some other stocks, such as Walmart Inc. (NYSE: WMT), have made similar announcements at times when their stock was closer to 52-week highs.
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The article "Booking Holdings Split: The Catalyst Wall Street Didn’t See Coming" first appeared on MarketBeat.
