Why Booking Holdings Inc. (BKNG) is One of the Most Undervalued Hotel Stocks to Invest In Now

Booking Holdings Inc. (NASDAQ:BKNG) is one of the most undervalued hotel stocks to invest in now. Bernstein cut the price target on Booking Holdings Inc. (NASDAQ:BKNG) to $4,698 from $5,407 on March 11, reiterating a Market Perform rating on the shares and telling investors that, financially, fiscal Q4 marked a strong finish to 2025 for the company. All three OTAs delivered a top and bottom-line beat, guidance was ahead of consensus for 26, and on a full-year basis, all of them grew market share profitably in 2025. However, Bernstein added that short-term earnings momentum has taken a backseat, with concerns that the potential AI disruption of the OTA business model is driving share price performance.

Jim Cramer on Booking Holdings (BKNG): “Think Twice Before You Write Off the Travel Bull Market”

In a separate development, Booking Holdings Inc. (NASDAQ:BKNG) was upgraded to Overweight from Equal Weight by Morgan Stanley on February 23. The firm adjusted the price target on the stock to $5,500 from $6,150, and told investors that it sees the company staying “a key driver of travel” even as the evolution of agentic tools continues. It stated that Booking Holdings Inc. (NASDAQ:BKNG) will still “own the customer”, capture “robust” traveler data, and use it to drive high-margin direct business.

Booking Holdings Inc. (NASDAQ:BKNG) provides online travel and related solutions, including accommodation reservations, including hotels, hostels, apartments, vacation rentals, and other properties. The company offers its services through the following brands: Booking.com, Priceline, Agoda, KAYAK, and OpenTable.

While we acknowledge the risk and potential of BKNG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BKNG and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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