By Sam Boghedda

Brian Nowak from Morgan Stanley stated that they are still Overweight in Uber (NYSE) and Google(NASDAQ:), but tactically optimistic on Booking Holdingsss (NASDAQ.). The latest AlphaWise data reveals travel intent to be holding steady.

Nowak stated that the latest AlphaWise survey, which surveyed 2,000 Americans, shows how travelers demand continues to be strong. 58% expect to travel within the next six months. This is roughly the same as the one-month ago survey.

Morgan Stanley sees the purchasing behavior of consumers with higher incomes as a key indicator of economic health. It hopes to achieve a soft landing.

Analyst added, “In the case of this study we see that higher-income households expected to spend travel also remains strong…with 80% expect to travel in 6 months.”

The survey revealed that 63% of respondents expect to decrease their spending during the next six-months due to inflation. That’s down from 59% at March’s close.

While it’s too soon to declare this a significant risk, we plan to keep our eyes on high-frequency data points while we monitor online food delivery and travel sub-sectors.

“Within the names impacted these data points we remain OW Uber…as the strong travel demand is an important driver the rideshare industry (estimated 25% rideshare volumes). UberEats considers dining out a priority. OW-rated GOOGL has a significant paid search market (10% in paid search). Although Street and EW remain the top OTAs, tactically we’re positive about BKNG due to strong demand, cash flow generative nature and reasonable valuation.