Alibaba vs. Booking: Which Travel Provider Stock Is a Better Buy in 2026?
2026-10-24 19:42
•Brendan Coffey •The Motley Fool
•••••••••• •••••••• Axe Cap view
Booking Holds the Edge Over Alibaba for 2026
Booking's solid travel bookings growth and cash strength outshine Alibaba's regulatory and growth challenges.
Alibaba’s ambitious pivot to AI cloud services offers some promise but is overshadowed by slowing revenue growth, expected net income declines, and intense regulatory scrutiny in China. This weighs heavily on its near-term potential. Conversely, Booking Holdings stands out with robust revenue growth, high profitability, and a successful shift to a more lucrative merchant model. Its massive cash reserves and buyback program add shareholder value and show confidence in future prospects. South African investors may find limited direct exposure to these giants, but the USD/ZAR rate often reflects global risk appetite impacted by growth concerns in China or US consumer strength driving travel. Booking’s scale and momentum offer a clearer runway, while Alibaba remains a riskier bet given regional constraints. This view might falter if China’s regulatory environment improves quickly or Alibaba’s AI investments generate unexpected returns. this is just our opinion and not financial advice
Trim Alibaba exposure due to regulatory and growth pressures. Prefer selectively increasing stocks linked to global travel recovery and strong cash flow, such as positioning around USD/ZAR reflecting higher global travel demand and risk-on sentiment.
- Alibaba (BABA)
- Booking Holdings (BKNG)
- USD/ZAR
- China regulatory crackdown eases faster than expected
- Global travel demand weakens due to new COVID variants or economic slowdown
6/10
The article compares Alibaba Group and Booking Holdings as investment options for 2026. Alibaba operates in China's competitive e-commerce market with growing AI cloud services but faces regulatory pressures and slowing growth. Booking dominates global travel bookings with strong profitability, organic traffic growth, and a successful shift to a merchant model. The author recommends Booking as the better buy due to its focused strategy, scale benefits, and stronger growth momentum compared to Alibaba's regional constraints and capital-intensive AI expansion.
Our take is based on reporting first published by The Motley Fool.