Shares slid 5.1% to $157.46 Monday as Booking Holdings completed a massive €1.9 billion euro-denominated debt sale—the second tranche of a borrowing binge that also included a $750 million dollar offering just four days earlier. Together, that's roughly $2.6 billion of fresh debt in a single week, landing at a moment when the global travel sector is under its heaviest geopolitical pressure since the pandemic.
• Two Debt Deals in Four Days Signal an Urgent Push to Lock In Capital
The euro notes came in three slices with coupons of 3.500% (2030), 4.000% (2034) and 4.500% (2039).
Days earlier, on May 7, the company issued $750 million of 5.375% notes due 2036.
Proceeds will fund share buybacks and debt repayment. That sounds routine—but the sheer speed suggests management wanted to nail down rates before conditions worsen.
• The Balance Sheet Is Already Stretched
Booking's total debt now stands at roughly $17.5 billion.
Shareholder equity is negative $4.7 billion —meaning the company owes far more than the book value of what it owns, largely because of years of stock buybacks funded by borrowing. Its debt-to-EBITDA ratio (total debt divided by annual operating earnings) is 2.61× as of March 2026 , 24% above its own 10-year median of 2.10×.
• Geopolitical Conflict Is Hitting the Core Business Now
First-quarter results were already disrupted by the Middle East conflict, which affected travel routes and increased cancellations.
Oxford Economics estimates inbound Middle East arrivals could decline 11–27% in 2026.
Airbnb and Expedia have both flagged demand concerns and revised Q2 guidance downward , confirming this is a sector-wide problem, not a Booking-specific one.
• Analysts Are Cutting Targets, but Not Abandoning the Stock
Several firms, including Cantor Fitzgerald, have lowered price targets—Cantor to $175 with a Neutral rating.
DA Davidson kept a Buy but trimmed to $230.
An 87% gross margin and 22.4% return on assets help explain the lingering optimism: this is a highly profitable business borrowing into a storm. Whether the storm passes quickly or lingers through summer 2026 will determine if today's selloff is a buying opportunity—or just the beginning.