NASDAQ:BKNG
Booking Holdings Inc. (BKNG-Q)
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Apr 16, 2025, 12:00 amThis summary was created by AI, based on 11 opinions in the last 12 months.
Booking Holdings Inc., once known as Priceline, is an online travel booking platform that has demonstrated robust growth with revenues expanding at 9% annually over the past seven years. The company maintains a solid balance sheet with no net debt, low payout ratio supporting its dividend, and ample cash reserves, enabling share buybacks. Industry analysts highlight its asset-light business model, primarily leveraging commissions without substantial capital investments, which has yielded operating margins around 30%. The firm’s growth trajectory appears strong, with a projected earnings per share of over $200 by 2025 and a continued emphasis on returning capital to shareholders, assisted by strategic acquisitions and efficient corporate management. Experts suggest a favorable risk-reward profile compared to competitors, making it a top pick in the travel sector despite the current challenging economic landscape.
Premium contentPremium contentPremium contentThe well known online travel booking platform has seen revenues grow 9% annually over the past 7 years. Its platform includes a broad range of accommodation, car rental, and air travel opportunities where margins continue to grow. Its dividend is backed by a payout ratio under 20%. Cash reserves are growing as the company buys back shares. We recommend setting a stop-loss at $3600, looking to achieve $5700 — upside potential of 19%. Yield 0.8%
(Analysts’ price target is $5707.34)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.
BOOK decided to be an agent only, so they take a commission on every transaction. Operating margins of 30%. Investors like the capital-light model, giving it a higher multiple between high 20s or almost 30x PE. Today though, PE in low 20s.
EXPE buys hotel rooms in bulk and then resells them; takes more risk and more capital. Operating margins of 10%. PE usually around 20x. PE today is in low teens. Though not as good a business, valuation discount is excessive. Better risk/reward.
BKNG has been an amazing compounding machine. The stock is up +21,000% in the past 20 years. It has managed its growth well, made excellent acquisitions, managed recessions and kept its balance sheet strong. We have followed the company since shares were $20 (now $4,700). Good growth is still expected and its free cash flow is starting to really grow ($8B+ now). Even with massive growth it has reduced its share count by nearly 40% in the past decade. There are always risks, but this is one of our favorite growth stocks and is not even that expensive at 26X earnings.
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The last quarter was good, with an 8% 'beat' on earnings. It is expected to show at least 15% earnings growth in 2025. It has a very strong balance sheet with no net debt. It is priced OK at 27X earnings. It is sensitive to the economy and interest rates, but we are comfortable with the outlook. We would be comfortable buying today.
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BKNG has done pretty well since that price target. All the engines for value creation have worked quite well recently, with high single-digit revenue growth and aggressive capital return policies. We expect BKNG will continue to do well in the near term and we would be comfortable revisiting BKNG again if it drops below $3900.
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Has owned this for nearly 25 years when it was Priceline.com. An asset-lite company, so few capital investments. Their success comes from relationships with European hotels, which are small and not big chains (as in the U.S.). BKNG now owns Kayak, Open Table among many. Connected Trips is their latest success. Trades below the market PE. He predicts $200 EPS in the next report, so growing rapidly. People continue to travel.
Very competitive marketplace. Down today on overwhelming concern about consumer spending and prospects for travel for the next 12 months. Better positioned than EXPE, because Expedia's multiple brands cause confusion.
Generative AI is a concern for the future, as it may circumvent the go-between status of BKNG and EXPE and provide a personalized travel experience.
Booking Holdings Inc.(BKNG-Q) Rating
Ranking : 4 out of 5
Bullish - Buy Signals / Votes : 10
Neutral - Hold Signals / Votes : 1
Bearish - Sell Signals / Votes : 0
Total Signals / Votes : 11
Booking Holdings Inc.(BKNG-Q) Frequently Asked Questions
What is Booking Holdings Inc. stock symbol?
Booking Holdings Inc. is a American stock, trading under the symbol BKNG-Q on the NASDAQ (BKNG). It is usually referred to as NASDAQ:BKNG or BKNG-Q
Is Booking Holdings Inc. a buy or a sell?
In the last year, 11 stock analysts published opinions about BKNG-Q. 10 analysts recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Booking Holdings Inc..
Is Booking Holdings Inc. a good investment or a top pick?
Booking Holdings Inc. was recommended as a Top Pick by on . Read the latest stock experts ratings for Booking Holdings Inc..
Why is Booking Holdings Inc. stock dropping?
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
Is Booking Holdings Inc. worth watching?
11 stock analysts on Stockchase covered Booking Holdings Inc. In the last year. It is a trending stock that is worth watching.
What is Booking Holdings Inc. stock price?
On 2025-08-18, Booking Holdings Inc. (BKNG-Q) stock closed at a price of $5532.
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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