Booking Holdings stock crashes as a H&S pattern forms: buy the dip?

Booking Holdings stock price has been in a strong freefall in the past three consecutive weeks as concerns about the travel industry remains. BKNG dropped to a low it $4,237 on Monday, reaching its lowest level since April last year. It has crashed by 27% from its all-time high.

Why Booking Holdings stock has crashed 

Booking Holdings and other travel-related companies have pulled back in the past few months. Airbnb stock has slipped by 27% from its highest point in 2025, while TripAdvisor slumped to the lowest level since June last year.

Other companies like Expedia and Trip.com have also plunged in the past few months, erasing billions of dollars in value.

Booking Holdings and these other companies have slumped in the past few months as investors remain concerned about the travel industry’s future. A major concern is that the decision by Donald Trump to pause travel from some countries will have an impact on the industry.

The stock has retreated as concerns about the Middle East continue. A prolonged war in the region would lead to travel disruptions and higher travel costs.

The most recent results showed that the company’s business is doing well and that it will bounce back over time. Its results showed that the company’s room nights rose by 8% to 323 million, while its revenue rose by 13% to $9 billion.

The strong revenue growth happened because of the strength of its brands, which include companies like Booking, Priceline, Agoda, and OpenTable. All these companies have a strong presence in the travel industry.

Notably, the company expects that its business will continue doing well in the coming quarters. Its guidance was that its fourth quarter revenue growth would be between 10% and 12%. Also, the adjusted EBITDA is expected to come in between $2 billion and $2.1 billion.

Wall Street analysts, on the other hand, expect the revenue to be $6.1 billion, up by 16.8%, bringing its annual revenue to $26.7 billion. This revenue growth will soar to $29 billion this year. 

Booking Holdings stock has become undervalued as its forward price-to-earnings ratio is 19, down from the five-year average of 30. The forward PEG ratio is 1.18, also lower than the sector median of 1.86.

BKNG stock price technical analysis 

The weekly timeframe chart shows that the BKNG stock price has crashed in the past few weeks, moving from a high of $5,832 in July last year to the current $4,250.

It has moved to the 38.2% Fibonacci Retracement level. Also, the stock formed a head-and-shoulders pattern, a common bearish reversal sign in technical analysis.

The stock has moved below the Supertrend indicator, a sign that bears are in control. Also, it has moved below the 50-week and 100-week Exponential Moving Averages (EMA).

The Relative Strength Index (RSI) and the MACD indicators have continued falling. The RSI moved to the oversold level of 30, while the two lines of the MACD indicators have continued falling.

Therefore, the most likely Booking Holdings stock forecast is highly bearish, with the next key support level being the 50% Fibonacci Retracement level at $3,722, which is a 12% drop from the current level.

Booking stock will likely bounce back in the coming weeks, potentially after publishing its financial results on February 18 this year.

READ MORE: Kyndryl stock price crash: why investors should remain wary of KD

The post Booking Holdings stock crashes as a H&S pattern forms: buy the dip? appeared first on Invezz