Booking holdings announce its earnings release after the close on Thursday and that means there could be some volatile trading into the end of the week. Booking Holdings is the world’s number one when it comes to online travel. It has websites in over 200 countries in more than 40 languages and employs around 20,000 people. Listed on the Nasdaq, the company is a holiday tech stock. It owns a number of different trade fares aggregators like Booking.com, priceline.com, OpenTable, Kayak, and agoda.com.

So how will this earnings report go? Will the company have benefited from the surge in people wanting to travel again post Covid? Or will the company start feeling the pinch as consumers pull back on their spending as higher interest rates eat into disposable income?

From a seasonal perspective, the pattern is interesting with Booking Holdings seeing a spike higher into this earnings period followed by a slow grind lower into the summer. Is the slow summer grind the best outlook in the face of steeper US rates? Does a sell make sense or can the company reveal any surprises in the earnings release?

Major Trade Risks: The major trade risk here is that there is some excellent news or a Fed pivot that boots stock prices between now and the summer. At some point in the next few months, a Fed pivot seems reasonable.

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