Booking Holdings Inc. (BKNG)

Great CEO. The market is used to Booking delivering blow-out quarters, but the last one was not a blow-out, so shares fell.

The concern over AI is overdone. They have incorporated it into their business and it can be of benefit. The stock is down also due to geopolitical concerns which affect traveling. There is also concern over the consumer but he feels the consumer will continue to spend on travel. They want to continue to hang on to experiential events for which there is a craving by society now,     Buy 31  Hold 9  Sell 0

AI agents are the real concern to a company like this. 200-day MA trendline starting to move lower, stock price is below that. Sees 16% growth. Long term, secular tailwinds from travel. Technicals make it hard to buy now. 

He prefers, and owns, EXPE.

(Chart looks like a double-black-diamond ski slope because of the stock split of 25:1.) 

New addition to Dividend Growers portfolio in March. Global, best in class. Sophisticated online AI booking and payment engine. Concerns that AI will disrupt its moat is a case of baby out with the bathwater. Shares have compounded at 29% since 2000.

Edge that lets them earn north of 50% ROIC is a very collaborate partnerships with traffic drivers like META, GOOG, etc. Strong share buyback program. Yield is 0.90%.

BKNG has declined due to concerns that AI will disrupt its business. This is certainly possible, but AI can also help it. It has strong brands, a strong balance sheet and it knows its business and customers (this may help it compete with new entrants). Strong earnings growth is still very much expected. They would not consider it a sell. Unlock Premium - Try 5i Free

He's owned this for over 20 years. It's asset-lite, AI-enhanced and own Open Table, Kayak, RentalCars.com, Agoda and others. Are growing rapidly, over 20%. Next year they will earn over $200/share. This year, the market was afraid of a weak consumer and travel stocks weakening, but that didn't happen. Experiential travel remains strong.

Is efficient and asset-lite. AI fits in perfectly in what they do to generate future earnings. They own several, large travel sites. Trades at 25x PE, reasonable. The poster child for compounding.

EPS of $55.40 beat estimates of $50.38; revenue of $6.79B beat estimates of $6.55B. EBITDA of $2.42B beat estimates by 10%. Booking's revenue view remains muted, with the US still the slowest-growing region despite some recovery in 2Q. Asia is now the fastest-growing market, and management predicts high-single-digit industry growth there over the medium term, making it central to the company's broader strategy. Gains in alternative accommodations outpaced the core hotels business, with listings reaching $8.4 million, up 8% year over year. Analysts expect 7.8% revenue growth for 3Q, in line with guidance of 7-9%, which is slightly below the company's gross-bookings view of 8-10% due to a higher mix of flight bookings and increased merchandise and contract revenue.  3Q adjusted Ebitda margin is 46.4%, as continued marketing expense leverage is offset by rising merchandising spending and sales costs. It is not the best outlook, but all things considered decent enough. The stock is still up 52% over the past year, and strong earnings growth is expected into 2026/27. The balance sheet also remains solid. It is 25X earnings. Note cheap, but in the lower part of its historical range. We would remain comfortable buying. 
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Fantastic, growing fast, yet trades at only 18-20x PE. Low-capital and innovative with smart managers. Diversified geographically. Booking.com is the cornerstone, built on European mom-and-pop hotels that grew successfully from there. He first bought this 30 years ago when this was Priceline.