Throughout the running year, the share prices for Booking Holdings have continued to face a downtrend. As of now, the year-to-date share price loss experienced by Booking Holdings is 25%.
Booking Holdings is considered the largest online travel agency company in the entire world. The services that the customers can avail from the company are car rentals, airline tickets, lodging and so much more.
Despite the downtrend recorded in the share prices for Booking Holdings in 2022, analysts are still hopeful about it. According to the analysts, the company still has a chance of making a progress.
They expect that the share prices for Booking Holdings may surge in the long term. It only goes to suggest that in the year 2023, the share prices for Booking Holdings may make a rebound.
If that happens, then the share prices for the company may continue getting pushed higher. This would bring in more investors to the company’s side, providing aid to the company in regaining its lost strength.
Year-to-Date Performance
A look at the year-to-date performance of Booking Holdings’ share prices suggests that they have recorded a huge dip in 2022.
When the year 2022 began, the trading price of Booking Holdings’ shares was $2,461. However, at the time of writing, the share prices for Booking Holdings have reached a bottom of $1,788.
If we look at the performance of Booking Holdings from the S&P index, we will see that it is a 20% decline recorded by the company.
Major Factors Impacting the Company’s Performance
Multiple factors seem to be posing a negative threat to the overall performance of Booking Holdings.
The majority of these factors are due to the economic pressure that is causing consumers from moving away from such platforms.
In the running year, a great surge has been recorded in gas prices, followed by interest rates that have surged tremendously.
Then there are fears of high inflation and most importantly, there are fears of recession. This is a huge matter of concern for businesses that are targeting the same sector.
It is worth mentioning that all of the negative factors are interlinked and they seem to be impacting the overall economy.
Oil Prices
It could be stated that the factor that has started it all is the rising gas prices. Due to the ongoing war between Ukraine and Russia, oil prices surged all over the world.
Prior to that, the major reason behind the oil price surge was the decision made by OPEC. They had decided that the daily oil production will be reduced by 10 million barrels per day.
Although they have reduced the barrels from 10 million to less than that, still, they are not producing oil at the same potential as they did before the pandemic.
However, in 2022, it is the battle between Russia and Ukraine that has caused oil prices to surge. Even now, oil prices are moving higher due to the intervention of OPEC+.
Inflation Rates
Due to the rising gas prices, the inflation rates have also started to surge all over the world and especially in the United States. The supply chain disruptions and other post-pandemic problems have made things worse.
As a result, the inflation rates have surged and the situation is still out of control throughout the world.
Interest Rate Hikes
Due to the high inflation rates, several countries have started increasing their interest rates. This way, the countries are trying to bring the inflation rates under control.
However, each tactic takes a huge toll on the pockets of the earning class and they have to micro-manage their finances.
As people are trying to make ends meet, companies such as Booking Holdings are facing a negative impact.
All Building Up To Recession
Then there are strong fears of recession ahead. Therefore, people are being very cautious about the entire situation and want to save up as much money as possible for difficult times.
This, in turn, is again making matters worse for companies such as Booking Holdings.
Although the fears are not going away, there is still hope in the end. The reason behind the hikes in interest rates is to bring the inflation rates under control.
Countries from around the world have already started working on resolving the oil and gas supply issues. This will end up fixing the energy crisis, which would eventually bring the world out of the fears of a recession.