President Donald Trump's announcement of a ceasefire between Israel and Iran lifted the market indexes and travel stocks on Tuesday. Shares of Booking Holdings bounced back into buy range on the news.
But that wasn't the only catalyst for Booking stock. Earning a spot on Investor's Business Daily's Breakout Stocks Index, the S&P 500 company also made the latest list of new buys by the best mutual funds. An aggressive push into artificial intelligence – including agentic AI – also continues to drive demand.
Booking Holdings Vs. Expedia
With brands Booking.com, Priceline, Agoda, Kayak, and OpenTable under its wing, Booking Holdings outranks rival Expedia across several metrics.
With a market capitalization of over $176 billion, Booking Holdings dwarfs Expedia's $21 billion market cap. Last quarter, Booking generated over $4.7 billion in revenue, compared with Expedia's $2.9 billion. And with a 93 Composite Rating out of a possible 99, Booking leads all travel stocks. Expedia ranks second in the group with an 88 rating.
Booking stock also sports stronger signs of demand than its industry rival. The Priceline and OpenTable parent earns a 1.9 up/down volume ratio, topping Expedia's 1.4. Both stocks earn a B Accumulation/Distribution Rating. But Expedia has posted three quarters of rising fund ownership, compared to just two for Booking Holdings.
See Who Joins Booking On The IBD Breakout Stocks Index
Booking.com, Priceline Ride AI Tidal Wave
A continued push of AI initiatives continues to drive demand for shares of Booking Holdings. The company deploys AI assistants across its various brands to enhance the travel and dining experience.
AI-powered features range from AI Trip Planner at Booking.com and personalized recommendations from Priceline's Penny to automating tasks for restaurants at OpenTable with agentic AI.
As IBD sister company Barron's reported last week, agentic AI is expected to change the internet for the better. Evolving beyond AI chatbots and assistants, agentic AI aims to complete transactions, such as booking a flight or a table at a restaurant, with minimal human input. Brands like Priceline, OpenTable, and Booking.com stand to gain from this technology.
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Booking Stock Back In Buy Range As Expedia Sets Up
While Expedia looks to book a breakout from a first-stage cup with handle, Booking stock has jumped back into buy range, which extends up to 5% above the initial entry.
Booking broke out on May 19, clearing a 5,337.24 buy point. But after going on to notch a record high, shares pulled back, eventually sliding below the initial entry. With its relative strength line showing an uptick, Booking stock has climbed back above its 21-day exponential moving average as it returns to buy range.
Showing resilience on Wednesday, Booking came off the day's lows to hold support at its 21-day line.
See if the Israel-Iran ceasefire holds, providing a further boost to travel stocks, including Booking Holdings and Expedia.
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