Booking Holdings (BKNG) reports earnings tomorrow, and both our stock price and short interest models forecast a bearish move. The stock’s recent 5% rise typically signals a reversal lower, while short interest trends reinforce the negative outlook. With both models aligned, the downside risk is stronger than usual.

In Booking.com reporting tomorrow after the close there are two models that forecast the return after earnings.

The stock tends to revert and is up 5%. This is bearish.

The short model moves in the same direction, so the shorts are usually wrong and that return is negative which is bearish.

In this case both models are in the same direction which strengthen the signal.

Longer term the short interest is higher.

With Booking Holdings showing aligned bearish signals across both stock and short interest models, the probability of a post-earnings decline increases. Longer-term elevated short interest levels add further downside risk. Investors should consider these overlapping factors when positioning around the earnings event.

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