BOOKING Holdings Crashes by 10% in a day

Yesterday, the stock price of Booking Holdings crashed by 10%.

Why?

Here are some of the reasons I heard in the news:

1. The CEO of Kayak is retiring after 22 years and becoming executive chair

This makes no sense for the stock price to crash by that much, given that Kayak is a small subsidiary.

2. Price downgrade by UBS from $6800 to $6600.

It still feel excessive and I don't really care about analyst ratings.

Also the stock price of Expedia crashed 15% and Airbnb 7%.

3. Apparently tourism in the US fell by 6%

The report was from last week.

4. Google AI Search

That was months ago....

Only this morning, I got the answer, all software stocks crashed because of a new AI tool by Anthropic. How is Booking Holdings software?

The reality is that all these answers are wrong.

No one knows why the stock crashed.

The answers are given after the event.

We are wired to find cause and effect relationships, even when there are none.

My thesis on Booking Holdings did not change.

On average, more people will be traveling 20 years from now and they won't be sleeping on the streets. Everything else is noise.

And I made sure to buy some shares yesterday.

I hope the price falls even more.

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