Booking Holding stock after Piper downgrades on earnings
Shares of Booking Holding Inc. are down more than 9% in premarket trading Thursday after the online-travel company reported disappointing results. Piper Jaffray's Michael Olson downgraded the stock to neutral from overweight following the report. "Over the past six to eight quarters, Booking's results and guidance have proven less consistent than in past years, with more strategy changes that have, in some cases, surprised investors (i.e. change in marketing tactics that began in Q3'17 and increased spend on new growth initiatives announced last night)," Olson wrote. He previously argued that Booking deserved a premium multiple relative to peer Expedia Inc. due to the steadiness of Booking's business, but he's less upbeat on Booking now, as Expedia seems to be gaining share internationally and has better positioning with "alternative accommodations" Olson cut his target price to $1,800 from $2,100 in conjunction with the downgrade. Booking shares had gained 2% over the past three months, as of Wednesday's close, as the S&P 500 had risen 1.8%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.