Why Booking Holdings’ Recent Selloff May Be Overdone

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Booking Holdings (NASDAQ: BKNG) stock has experienced a significant 20% selloff this year, driven by AI concerns, market cooling, and geopolitical uncertainty, despite strong underlying business performance including 13% revenue growth and $9.1 billion in free cash flow in 2025. The company’s valuation, especially its price-to-free cash flow, appears reasonable after the pullback, and its capital-light model and strong cash generation capabilities suggest the selloff may be exaggerated. AI is seen as both a risk and an opportunity, with Booking well-positioned to leverage it due to its extensive data and international market reach.

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