Booking Holdings (BKNG) AI Stock Analysis

• Market Cap: $165.06B
• Dividend Yield: 0.71%
• Average Volume (3M): 294.24K
• Price to Earnings (P/E): 31.6
• Beta (1Y): 1.14
• Revenue Growth: 9.47%
• EPS Growth: 20.70%
• Country: US
• Employees: 24,500
• Sector: Consumer Cyclical
• Sector Strength: 61
• Industry: Travel Services
• EPS (TTM): 24.81
• Shares Outstanding: 32,540,337
• 10 Day Avg. Volume: 261,656
• 30 Day Avg. Volume: 294,244
• PEG Ratio: -4.28
• Price to Book (P/B): -27.26
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 19.46
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 1.78
• Enterprise Value/Gross Profit: 7.04
• Enterprise Value/Ebitda: 5.02
• 1Y Price Target: $5,498.27
• Price Target Upside: 5.84% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 35

Booking Holdings' robust revenue growth and strong operational performance are key strengths, despite high debt levels and a negative equity position. Positive technical indicators and optimistic earnings call results further support the stock's potential. Valuation remains moderate, providing a balanced outlook.

Positive Factors

AI and Technology

BKNG’s AI initiatives are driving sales growth and operating efficiency, contributing to significant increases in return on capital.

Financial Performance

Booking delivered a 28% EBITDA beat and 42% EPS beat.

Negative Factors

Macroeconomic Conditions

Macroeconomic slowdown and uncertainty may impact discretionary spending on travel and could negatively impact travel service providers through fewer bookings and rates.

Market Competition

Intensifying competition as players such as Google are expanding into the travel booking space, adding competitive pressure to the industry.

Booking Holdings Business Overview & Revenue Model

Company Description

Booking Holdings Inc. provides travel and restaurant online reservation and related services worldwide. The company operates Booking.com, which offers online accommodation reservations; Rentalcars.com that provides online rental car reservation services; Priceline, which offer online travel reservation services, and consumers hotel, flight, and rental car reservation services, as well as vacation packages, cruises, and hotel distribution services. It also operates Agoda that provides online accommodation reservation services, as well as flight, ground transportation and activities reservation services. In addition, the company operates KAYAK, an online price comparison service that allows consumers to search and compare travel itineraries and prices, comprising airline ticket, accommodation reservation, and rental car reservation information; and OpenTable for booking online restaurant reservations. Further, it offers travel-related insurance products, and restaurant management services to consumers, travel service providers, and restaurants. The company was formerly known as The Priceline Group Inc. and changed its name to Booking Holdings Inc. in February 2018. The company was founded in 1997 and is headquartered in Norwalk, Connecticut.

How the Company Makes Money

Booking Holdings primarily generates revenue through the commissions and transaction fees charged to travel service providers, such as hotels, airlines, and car rental companies, for bookings made through its platforms. The company operates a merchant model where it acts as an intermediary, collecting payment from customers and remitting it to service providers, often at a margin. Additionally, Booking Holdings benefits from advertising revenue on its websites and apps, as well as from partnerships with other travel-related businesses. Key revenue streams include accommodation reservations, which form the bulk of its income, followed by transportation services and advertising sales. The company's earnings are further supported by strategic partnerships with various travel industry stakeholders, enhancing its market presence and customer reach.

Booking Holdings Financial Statement Overview

Summary

Booking Holdings shows solid revenue growth and operational efficiency, reflected in its high margins and cash flows. However, the negative equity position and high debt levels pose a risk to financial stability. Continuous monitoring of profitability and leverage is essential for maintaining financial health.

Income Statement

Booking Holdings demonstrates strong financial performance with robust revenue growth and profitability metrics. The company has shown a consistent increase in total revenue, with a notable growth rate from 2022 to 2025. The TTM gross profit margin remains high, indicating efficient cost management. However, the decline in net income from 2024 to TTM suggests a need to monitor profitability amidst growing revenues.

Balance Sheet

The balance sheet reflects a high level of debt, with a negative stockholders' equity indicating potential financial risk. The debt-to-equity ratio is concerning, but the company maintains a significant cash reserve, which could help mitigate leverage risks. The equity ratio is negative, highlighting the need for improved equity position to enhance financial stability.

Cash Flow

A strong operating cash flow indicates the company’s ability to generate cash from operations, supporting its liquidity position. The free cash flow shows healthy growth, ensuring the company can fund its operations and investments. However, high financing cash outflows require attention to ensure sustainable cash flow management.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
24.09B	23.74B	21.36B	17.09B	10.96B	6.80B
	Gross Profit
23.57B	22.99B	21.36B	16.48B	10.36B	6.15B
	EBIT
7.83B	7.55B	5.83B	5.10B	1.81B	2.13B
	EBITDA
8.88B	9.34B	7.04B	4.92B	2.40B	1.56B
	Net Income Common Stockholders
5.44B	5.88B	4.29B	3.06B	1.17B	59.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
15.58B	16.16B	12.68B	12.40B	11.15B	11.06B
	Total Assets
27.19B	27.71B	24.34B	25.36B	23.64B	21.87B
	Total Debt
16.50B	17.08B	15.00B	13.04B	11.28B	12.38B
	Net Debt
922.00M	917.00M	2.68B	816.00M	150.00M	1.82B
	Total Liabilities
33.30B	31.73B	27.09B	22.58B	17.46B	16.98B
	Stockholders Equity
-6.11B	-4.02B	-2.74B	2.78B	6.18B	4.89B
Cash Flow		Free Cash Flow
8.48B	7.89B	7.00B	6.19B	2.52B	-201.00M
	Operating Cash Flow
8.90B	8.32B	7.34B	6.55B	2.82B	85.00M
	Investing Cash Flow
-58.00M	129.00M	1.49B	-518.00M	-998.00M	2.64B
	Financing Cash Flow
-8.96B	-4.20B	-8.91B	-4.90B	-1.24B	1.53B

Booking Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5194.99
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BKNG, the sentiment is Positive. The current price of 5194.99 is above the 20-day moving average (MA) of 4864.67, above the 50-day MA of 4701.29, and above the 200-day MA of 4534.79, indicating a bullish trend. The MACD of 150.87 indicates Negative momentum. The RSI at 60.18 is Neutral, neither overbought nor oversold. The STOCH value of 80.02 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BKNG.

Booking Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ABNB	78 Outperform	$79.58B	31.97	32.06%	―	9.68%	-47.83%
BKNG	77 Outperform	$165.06B	31.56	-146.32%	0.71%	9.47%	20.70%
TCOM	76 Outperform	$40.57B	17.85	12.91%	0.46%	18.12%	69.44%
MMYT	75 Outperform	$10.75B	45.99	23.09%	―	28.51%	367.34%
TRIP	71 Outperform	$1.97B	41.20	5.91%	―	1.43%	121.44%
EXPE	70 Outperform	$19.98B	18.46	119.16%	0.26%	5.57%	61.19%
Sector *	61 Neutral	$6.68B	11.75	3.01%	3.94%	2.61%	-21.96%

Booking Holdings Corporate Events

Booking Holdings Issues €1.75 Billion in Senior Notes

On May 6, 2025, Booking Holdings Inc. executed an underwriting agreement with several major financial institutions to issue and sell €1,750,000,000 in Senior Notes as part of a registered public offering. This transaction, conducted under the company’s Registration Statement, included the issuance of three types of Senior Notes with varying maturity dates and interest rates. The issuance of these Senior Notes is a strategic financial move, potentially impacting the company’s capital structure and market positioning by providing additional liquidity and financial flexibility. The notes are unsecured obligations, and the company has appointed U.S. Bank Europe DAC, UK Branch, as the paying agent and U.S. Bank Trust Company, National Association as the transfer agent.

Spark’s Take on BKNG Stock

According to Spark, TipRanks’ AI Analyst, BKNG is a Outperform.

Booking Holdings’ robust revenue growth and strong operational performance are key strengths, despite high debt levels and a negative equity position. Positive technical indicators and optimistic earnings call results further support the stock’s potential. Valuation remains moderate, providing a balanced outlook.

To see Spark’s full report on BKNG stock, click here.

Wei Hopeman Announces Retirement from Booking Holdings

Wei Hopeman has announced her retirement from Booking Holdings Inc.’s Board of Directors, effective at the company’s Annual Meeting in June 2025. The company and its Board have expressed their gratitude for her dedicated service.

Spark’s Take on BKNG Stock

According to Spark, TipRanks’ AI Analyst, BKNG is a Outperform.

Booking Holdings demonstrates strong financial growth and profitability, supported by positive earnings call guidance. However, the negative equity on the balance sheet is a concern, and technical indicators suggest a cautious approach with potential downward price momentum. Valuation metrics indicate fair market pricing. Overall, the stock presents a balanced risk-reward scenario, with strengths in operational efficiency and strategic initiatives offset by financial structure risks.

To see Spark’s full report on BKNG stock, click here.