Booking Holdings (BKNG) AI Stock Analysis

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Booking Holdings

(NASDAQ:BKNG)

Rating:67Neutral

Price Target:

$5,951.00

▲(6.29% Upside)

Booking Holdings' strong financial growth and strategic advancements are offset by financial risks due to high leverage and negative equity. The stock's technical indicators suggest a lack of strong momentum, and its valuation appears high. The positive earnings call provides a boost, reflecting robust demand and strategic initiatives.

Positive Factors

Cost Management

The transformation program achieved significant cost savings, with expectations of more savings in the future.

Financial Performance

Q2 showed strong performance with nights up by 7.7% due to better-than-expected performance in Asia and Europe.

Loyalty Program

Genius Loyalty drives higher booking frequency, with travelers increasingly moving into higher Genius tiers, representing a significant portion of active travelers and total room nights.

Negative Factors

Market Headwinds

The biggest short-term headwind is the tougher 3Q comp, which is presumably why shares were down modestly after-hours.

Market Pressure

There is some pressure in the US market with softness in average daily rates and booking windows.

Booking Holdings (BKNG) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$181.46B

Dividend Yield0.66%

Average Volume (3M)191.86K

Price to Earnings (P/E)38.9

Beta (1Y)1.12

Revenue Growth11.72%

EPS Growth0.51%

CountryUS

Employees24,500

SectorConsumer Cyclical

Sector Strength81

IndustryTravel Services

Share Statistics

EPS (TTM)55.40

Shares Outstanding32,409,885

10 Day Avg. Volume164,165

30 Day Avg. Volume191,859

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap1.05

Enterprise Value/Revenue7.60

Enterprise Value/Gross Profit7.84

Enterprise Value/Ebitda22.16

Forecast

1Y Price Target

$6,109.65

Price Target Upside9.12% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering26

Booking Holdings Business Overview & Revenue Model

Company DescriptionBooking 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 MoneyBooking Holdings generates revenue primarily through its online travel agency services, which include commissions from hotels and other accommodations, as well as service fees from travelers. The company earns a significant portion of its income from the commissions charged to hotel partners when travelers book through its platforms. Additionally, Booking Holdings generates revenue from advertising services, where partners pay to promote their listings on its websites. The company's vast network of partnerships with airlines, hotels, and car rental companies enhances its offerings and contributes to its earnings. Furthermore, its diversified portfolio across different regions and customer segments allows for a resilient revenue model that capitalizes on global travel demand.

Booking Holdings Key Performance Indicators (KPIs)

Any

Travel Bookings

Travel Bookings
Tracks the total number of travel reservations made, indicating consumer demand and market share within the travel industry.

Chart InsightsBooking Holdings' Merchant segment is driving growth, with a notable upward trajectory since 2023, reflecting strong global demand and strategic advancements in AI and the Connected Trip vision. Despite challenges in the U.S. market, the earnings call highlights robust performance in Europe and Asia, with double-digit growth in room nights and gross bookings. The Agency segment, however, shows a gradual decline, indicating a strategic pivot towards Merchant services. This shift aligns with the company's focus on alternative accommodations and loyalty program success, positioning it well for sustained growth despite geopolitical uncertainties.

Data provided by:

Main Street Data

Booking Holdings Earnings Call Summary

Earnings Call Date:Jul 29, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Oct 29, 2025

Earnings Call Sentiment Positive

The earnings call reflects strong financial performance and strategic advances, particularly in alternative accommodations and AI-driven initiatives, despite challenges in the U.S. market and geopolitical uncertainties.

Q2-2025 Updates

Positive Updates

Strong Financial Performance

Second quarter revenue grew 16% year-over-year, exceeding expectations. Adjusted EBITDA increased by 28% year-over-year, and adjusted EPS grew 32%.

Positive Room Night and Booking Growth

Room nights reached 309 million, an 8% increase from the previous year, with gross bookings up 13% and revenue up 16%.

Significant Growth in Alternative Accommodations

Alternative accommodation listings increased to 8.4 million, an 8% increase year-over-year, contributing to a 10% growth in room nights for this segment.

Expansion of Genius Loyalty Program

The Genius loyalty program continues to expand, with over 30% of active travelers in higher tiers, contributing significantly to booking frequency and direct bookings.

Connected Trip Vision Progress

Connected Trip transactions grew over 30% year-over-year, supported by strong growth in non-accommodation verticals like flights and attractions, with flight tickets up 44%.

Advancements in AI Integration

Investments in AI capabilities, including enhancements in Priceline's AI assistant Penny and OpenTable's AI Concierge, have improved customer engagement and service efficiencies.

Negative Updates

Challenges in the U.S. Market

The U.S. remains the slowest-growing region with lower ADRs, shorter booking windows, and indications of cautious consumer spending.

Geopolitical and Macroeconomic Uncertainties

There are ongoing challenges due to geopolitical dynamics and macroeconomic uncertainties, which have impacted June's growth by approximately 1%.

Difficulties in the China Market

Booking Holdings faces challenges in competing in China's domestic market and has adjusted expectations for outbound business from China.

Company Guidance

During the second quarter of 2025, Booking Holdings delivered robust financial results that surpassed expectations, driven by strong demand across its globally diversified business. Room nights grew by 8% year-over-year to 309 million, with notable performance in Europe and Asia, while gross bookings increased by 13% and revenue by 16%, both exceeding guidance. FX favorably impacted growth rates by approximately 4 percentage points. Adjusted EBITDA rose by 28%, reflecting disciplined expense management. The company reported adjusted EPS growth of 32% year-over-year. Strategic initiatives such as expanding alternative accommodations, with 8.4 million listings, and accelerating the Connected Trip vision contributed to a 10% growth in alternative accommodation room nights and over 30% growth in Connected Trip transactions. The Genius loyalty program now accounts for over 30% of active travelers. Additionally, non-accommodation verticals like flight tickets and attraction tickets saw significant growth, with flights up 44% and attractions more than doubling year-over-year. Looking ahead, the company expects room night growth of 3.5% to 5.5% in the third quarter, with gross bookings projected to rise between 8% and 10%. For the full year, guidance was raised, with expectations of low double-digit growth in gross bookings and revenue, and mid-teens growth in adjusted EBITDA.

Booking Holdings Financial Statement Overview

Summary

Booking Holdings shows strong revenue growth and profitability, with efficient cash flow generation. However, the negative equity position and high leverage present significant financial risks, impacting the overall score.

Income Statement

Very Positive

Booking Holdings has demonstrated strong revenue growth with a TTM increase of 3.9%. The company maintains robust profitability with a gross profit margin of 71.3% and a net profit margin of 19.2% in the TTM. However, there is a slight decline in net income compared to the previous year, which impacts the overall score.

Balance Sheet

Neutral

The balance sheet shows a concerning negative stockholders' equity, leading to a high debt-to-equity ratio of -2.85 in the TTM. This indicates significant leverage and potential financial risk. The return on equity is also negative, reflecting challenges in generating returns for shareholders.

Cash Flow

Positive

Cash flow analysis reveals a healthy free cash flow growth rate of 8.9% in the TTM. The operating cash flow to net income ratio is strong at 0.51, indicating efficient cash generation relative to net income. The free cash flow to net income ratio is also robust at 0.96, suggesting good cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	25.02B	23.74B	21.36B	17.09B	10.96B	6.80B
Gross Profit	24.25B	22.99B	20.70B	16.48B	10.36B	6.15B
EBITDA	8.58B	9.34B	7.04B	4.92B	2.40B	1.56B
Net Income	4.81B	5.88B	4.29B	3.06B	1.17B	59.00M
Balance Sheet
Total Assets	30.68B	27.71B	24.34B	25.36B	23.64B	21.87B
Cash, Cash Equivalents and Short-Term Investments	17.59B	16.16B	12.68B	12.43B	11.15B	11.06B
Total Debt	18.99B	17.08B	14.78B	13.04B	11.28B	12.38B
Total Liabilities	37.34B	31.73B	27.09B	22.58B	17.46B	16.98B
Stockholders Equity	-6.66B	-4.02B	-2.74B	2.78B	6.18B	4.89B
Cash Flow
Free Cash Flow	9.24B	7.89B	7.00B	6.19B	2.52B	-201.00M
Operating Cash Flow	9.58B	8.32B	7.34B	6.55B	2.82B	85.00M
Investing Cash Flow	-256.00M	129.00M	1.49B	-518.00M	-998.00M	2.64B
Financing Cash Flow	-8.79B	-4.20B	-8.91B	-4.90B	-1.24B	1.53B

Booking Holdings Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price5599.05

Price Trends

50DMA

5603.61

Negative

100DMA

5361.91

Positive

200DMA

5113.93

Positive

Market Momentum

MACD

26.60

Negative

RSI

50.78

Neutral

STOCH

47.09

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BKNG, the sentiment is Neutral. The current price of 5599.05 is above the 20-day moving average (MA) of 5549.23, below the 50-day MA of 5603.61, and above the 200-day MA of 5113.93, indicating a neutral trend. The MACD of 26.60 indicates Negative momentum. The RSI at 50.78 is Neutral, neither overbought nor oversold. The STOCH value of 47.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BKNG.

Booking Holdings Risk Analysis

Booking Holdings disclosed 34 risk factors in its most recent earnings report. Booking Holdings reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Booking Holdings Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ABNB	75 Outperform	$81.12B	31.49	33.26%	―	10.23%	-44.56%
TCOM	73 Outperform	$48.87B	20.40	12.94%	0.38%	17.73%	27.95%
EXPE	72 Outperform	$26.57B	26.28	129.04%	0.56%	5.69%	47.33%
BKNG	67 Neutral	$181.46B	38.94	-146.32%	0.66%	11.72%	0.51%
MMYT	67 Neutral	$9.40B	112.02	22.38%	―	18.13%	-55.21%
TRIP	66 Neutral	$2.02B	36.61	8.76%	―	3.03%	187.03%
Sector *	61 Neutral	$17.67B	14.34	-5.25%	3.04%	1.27%	-14.70%

* Consumer Cyclical Sector Average

Performance Comparison

BKNG

Booking Holdings

5,599.05

1,814.69

47.95%

TCOM

Trip.com Group Sponsored ADR

73.75

26.63

56.52%

EXPE

Expedia

214.80

78.93

58.09%

MMYT

Makemytrip

98.75

10.13

11.43%

TRIP

TripAdvisor

17.42

3.70

26.97%

ABNB

Airbnb

127.59

12.61

10.97%

Booking Holdings Corporate Events

Executive/Board ChangesShareholder Meetings

Booking Holdings Confirms Board Members at Annual Meeting

Neutral

Jun 4, 2025

On June 3, 2025, Booking Holdings held its virtual Annual Meeting of Stockholders, where several key proposals were voted on. The election of board members was confirmed, with individuals such as Glenn D. Fogel and Mirian M. Graddick-Weir being elected. Additionally, the advisory vote on 2024 executive compensation and the ratification of Deloitte & Touche LLP as the company’s accounting firm for fiscal year 2025 were approved. However, a stockholder proposal to modify the company’s special meeting threshold was not approved.

The most recent analyst rating on (BKNG) stock is a Hold with a $3750.00 price target. To see the full list of analyst forecasts on Booking Holdings stock, see the BKNG Stock Forecast page.

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 15, 2025