Investors appeared disappointed after AI-powered corporate travel platform Navan reported quarterly earnings that revealed rising operating costs and expanding operational losses.

Despite market reaction, corporate travel demand has boomed, and some Wall Street analysts are all in for buying the dip.

Shares of Navan, dubbed as an "Amazon for Travel," slumped 21% to $20.52 on Thursday even after posting a beat-and-raise for quarterly earnings.

Top-line momentum was likely overlooked by a 46% surge in operating costs, to $200.2 million, in the fiscal second quarter, and an operating loss that widened to $25.6 million from $12.3 million a year prior. This outpaced revenue growth of 35%, to $232.8 million.

Shares were on track for their largest percentage decrease since its IPO in late October of last year, according to Dow Jones Market Data.

In a separate press release, Navan announced its acquisition of AI-driven events platform BoomPop for an undisclosed amount. The deal will expand Navan's outreach by leveraging AI into the corporate events market.

On an earnings call late Wednesday, chief financial officer Aurélien Nolf said the acquisition would have a "very low-single digit" to revenue in fiscal 2027, with expectations for growth to materialize in fiscal 2028.

Navan raised its outlook for fiscal year revenue to $927 million and $933 million from a previous range of $907 million and $913 million.

Morgan Stanley analysts wrote that the post-earnings selloff was likely triggered by institutional buyers expecting a larger revenue beat. However, viewing the drop as an attractive buying opportunity, the firm reiterated its Overweight rating, calling themselves "buyers of the weakness."

Adding to the bullish sentiment, Rosenblatt analyst Blair Abernethy advised investors to buy the dip, citing "outperformance' in the fiscal second quarter and a solid outlook for the fiscal third quarter and fiscal 2027. Reaffirming his Buy rating, Abernethy raised his price target on the stock to $29 from $27.

Navan also saw a surge in new enterprise contracts, revealing that demand for corporate travel isn't slowing down. Gross booking volume grew 45% to $3 billion, hitting a record, according to management.

Navan also reported that subscription revenue came in at $21 million, up 39% from a year ago. Payment volume also rose 34% to $1.3 billion.

Adjusted profit totaled 5 cents a share, slightly topping Wall Street's estimates of 4 cents a share.

Business travel in the U.S. has continued to propel growth in the economy, generating a $623.8 billion impact in total gross domestic product, according to the Global Business Travel Association.

As businesses gravitate toward AI-powered booking platforms, market leaders like Navan may only be in the early stages of booming growth.