Booking Holdings (NASDAQ: BKNG) has lost 20% of its value since the beginning of the year and is down by 27% from its high in June. Investors are concerned about AI and other challenges. The company will report Q4 2025 results on Feb. 18, prompting investors to consider buying before the report.

Booking Holdings stock is in bear market territory, down over 20%. Such drops can be buy signals before earnings reports. Investor concerns seem to revolve around AI in travel, an area where Booking Holdings has heavily invested. Revenue forecasts show growth with a 17% increase for Q4 and 22% for 2025.

Despite worries about AI potentially impacting the business, Booking Holdings’ revenue forecasts do not suggest a loss of business. The company’s valuation is attractive with a P/E ratio of 28 below the S&P 500 average. The stock is near 52-week lows, making it a potential buy for long-term investors.

The concern over AI’s impact and the downward trend of the stock price could accelerate if the earnings report disappoints. However, double-digit revenue growth rates indicate the sell-off may be temporary. At a forward P/E ratio of 16, the stock could rise post-report, benefiting investors.

Considerations before buying Booking Holdings stock include the impact of AI on the business and the potential for a positive earnings report. The company’s revenue growth suggests the sell-off may be temporary, and the stock could rise after the report, making it a profitable investment opportunity.

Read more at Yahoo Finance: Should You Buy Booking Holdings Stock Before Feb. 18?