vitalalyt

Booking Holdings - Time for Bubble to Burst?

Short
NASDAQ:BKNG   Booking Holdings Inc. Common Stock
Is it time for Booking Holdings to correct and let the steam out of the overpriced and struggling business?

Following Covid pandemic travel business has suffered the greatest blow for over a decade impacting all the areas of this industry. And it still has not fully recovered .

Specifically with this company the financial indicators speak for themselves:

  • Revenue - 2021 figure was less than half of 2020 which was already impacted by the all known events, and 2022 is probably unlikely to recover to pre-Covid times
  • P/E - is at 78x and at the time when there is a high risk of global recession investors will be thinking twice if to hold this stock in the portfolio
  • Earnings Reporting - Q4 2021 results were not as impressive and Q1 has to be exceptional to keep investors interested

Technical analysis remarks - looking at the monthly timeframe (more visible in a log scale) it is possible to mark full impulse with an ending diagonal recently completed. The presented scenario suggests that this might be the first impulse and correction in the second wave is to follow. The retracement may be quite deep to 0.618 or 0.786 Fibonacci levels hence a significant drop to £1000 and $600 accordingly.

Considering both fundamental and technical points this scenario is quite plausible for Booking Holdings .

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