Morgan Stanley believes that higher-income consumers' spending habits are especially critical to the health of the economy and anticipates a softer landing. In this situation, they observe that higher income families' planned travel spend remains strong, with 80% of those polled planning to travel in the next 6 months, according to their analysis.

They saw a decrease in projected travel and dining out among customers concerned about inflation, with 63 percent anticipating cutting overall expenditure over the next six months as a result of inflation (from 59 percent at the end of April).

Company added, that while it is too early to classify this as a major risk, they aim to keep a close eye on these high-frequency data points as we watch the online travel and online food delivery subsectors. Within the names impacted by these data points, they remain OW Uber and Booking.

Movement of Booking’s stocks in the last five years. (Source: Trading Economics)

Sources:

https://tradingeconomics.com/bkng:us

https://finance.yahoo.com/news/p-500-shakes-off-target-140317658.html

https://www.investing.com/news/stock-market-news/morgan-stanley-positive-on-uber-google-and-booking-as-travel-intent-holds-up-432SI-2834546