Is Booking (BKNG) The Best Travel Stock in Harvard University Stock Portfolio?

Harvard’s Stake: $147,058,057

Booking Holdings (NASDAQ:BKNG) is down astir 21% truthful acold this twelvemonth amid fears implicit weakening question demand, macro uncertainty, and the ongoing Middle East conflict. But immoderate analysts judge the selloff represents a aureate accidental to accumulate shares astatine a important discount to intrinsic value. Despite the headwinds, Q1 gross jumped 16.2% twelvemonth implicit year, with the Iran struggle estimated to person caused a 2 percent constituent deed connected country nights and a somewhat smaller interaction connected revenue. For the afloat year, absorption expects precocious single-digit gross maturation and debased mid-teens adjusted EPS growth, with gross bookings projected to turn successful the precocious azygous digits to debased treble digits.

Looking into Q2, the struggle headwind is expected to intensify to astir 3 percent points connected country nighttime growth. Booking Holdings (NASDAQ:BKNG) has besides flagged that large US events, including the FIFA World Cup and America’s 250th day celebration, hazard delivering underwhelming results owed to presently anemic bookings.

Longer term, bulls constituent to respective compelling drivers. Booking Holdings’ (NASDAQ:BKNG) Agoda level is well-positioned to seizure high-growth Southeast Asian question markets, 1 of the fastest-recovering and fastest-growing regions globally. On AI, the communicative is much tailwind than headwind — alternatively than disrupting Booking’s business, AI is being utilized to accelerate innovation and beforehand Booking Holdings’ (NASDAQ:BKNG) Connected Trip ecosystem.

Despite concerns that the Iran struggle could measurement connected question demand, caller information suggest consumers stay committed to their abrogation plans. United Airlines said it expects to transportation astir 53 cardinal passengers this summer, astir 3 cardinal much than past year, driven by beardown request for trips tied to large events specified arsenic the 2026 FIFA World Cup, the August star eclipse successful Europe and large performance tours. The airline’s outlook adds to signs that leisure question request remains resilient adjacent arsenic higher substance prices and geopolitical uncertainty propulsion question costs higher.

Wedgewood Partners stated the pursuing regarding Booking Holdings Inc. (NASDAQ:BKNG) successful its Q1 2026 capitalist letter:

“Booking Holdings Inc. (NASDAQ:BKNG) detracted from wide show during the quarter. Earnings per stock grew +17%, with revenues up +16%, arsenic question request remained beardown precocious into 2025 and into aboriginal 2026. Most of the stock’s weakness stemmed from investors labeling it an “AI loser” and, aboriginal successful the quarter, the outbreak of warfare successful the Middle East. Consumer AI, arsenic a disruptive force....(Click Here to Read the Letter successful Detail).”