Booking Holdings (BKNG) - Get Report, TripAdvisor (TRIP) - Get Report and Expedia (EXPE) - Get Report sank Friday as analysts warned the economic fallout from the fast-spreading coronavirus could hit the travel stocks particularly hard.
Shares of Booking Holdings, formerly Priceline, fell 2.01% to $1,835.38, while TripAdvisor dropped 1.88% to $27.68 and Expedia edged down 1.35% to $107.63 amid the warnings from analysts at Jefferies and SunTrust Robinson Humphrey.
The travel stocks fell as airlines and governments across the world scrambled to ban or severely limit travel to China, the epicenter for the virus. At least 200 people have died and nearly 10,000 have been sickened, most of them in China.
Jefferies analyst Jeff Thill warned clients that Booking Holdings and Expedia's positions as "global travel marketplaces" make both companies particularly vulnerable amid the disruption to travel and business activity caused by the coronavirus.
Noting there is "already a negative impact on global travel," the Jefferies' analyst warned of "downside risk to the 1H20 numbers."
Jefferies' Thill reduced his revenue estimates for both companies, noting Booking Holdings is likely to be the harder hit of the two due to its larger exposure to the Asian market.
SunTrust analyst Naved Khan reduced his price target for Booking Holdings to $2,250 from $2,350 a share, while also predicting the fallout from the coronavirus would have a "large impact" on the company.
Still, the SunTrust analyst maintained his buy rating on the stock.
Delta Air Lines (DAL) - Get Report and American Airlines (AAL) - Get Report on Friday pulled the plug on flights to China until the virus abates, with American halting flights on Friday and Delta planning to stop flying to China starting in early February.