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Booking Holdings (BKNG)
NASDAQ:BKNG
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Booking Holdings
(NASDAQ:BKNG)
Rating:64Neutral
Price Target:
$5,812.00
▲(8.35% Upside)
Positive Factors
Cost Savings
The transformation program achieved significant cost savings, with expectations for more reductions in the future.
International Performance
Strong performance in Asia and Europe boosted nights by 7.7%, surpassing expectations.
Negative Factors
Short-term Headwinds
The toughest short-term headwind is the challenging 3Q comparison, which impacted share performance.
US Market Pressure
Pressure in the US market is affecting average daily rates, length of stay, and booking windows.
Booking Holdings (BKNG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$175.20B
Dividend Yield0.68%
Average Volume (3M)196.84K
Price to Earnings (P/E)37.6
Beta (1Y)1.12
Revenue Growth11.72%
EPS Growth0.51%
CountryUS
Employees24,500
SectorConsumer Cyclical
Sector Strength72
IndustryTravel Services
Share Statistics
EPS (TTM)55.40
Shares Outstanding32,409,885
10 Day Avg. Volume245,524
30 Day Avg. Volume196,841
Financial Highlights & Ratios
PEG Ratio0.60
Price to Book (P/B)-41.55
Price to Sales (P/S)7.04
P/FCF Ratio21.16
Enterprise Value/Market Cap1.09
Enterprise Value/Revenue7.60
Enterprise Value/Gross Profit7.84
Enterprise Value/Ebitda22.16
Forecast
1Y Price Target
$6,110.75Price Target Upside13.92% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering26
Booking Holdings Business Overview & Revenue Model
Company DescriptionBooking Holdings Inc. is a leading global online travel and related services company headquartered in Norwalk, Connecticut. The company operates several well-known travel fare aggregators and travel metasearch engines, including Booking.com, Priceline, Agoda, Kayak, and OpenTable. It primarily provides a platform for users to book accommodations, flights, rental cars, and travel experiences, catering to both leisure and business travelers across various markets worldwide.
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
Tracks the total number of travel reservations made, indicating consumer demand and market share within the travel industry.
Tracks the total number of travel reservations made, indicating consumer demand and market share within the travel industry.
Data provided by:
Main Street Data
Main Street DataBooking Holdings Earnings Call Summary
Earnings Call Date:Jul 29, 2025
(Q2-2025)
| % Change Since: -4.05%|
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Positive
The earnings call reflects strong financial growth and strategic advancements in AI and the Connected Trip vision, despite some challenges in the US market and geopolitical concerns.Q2-2025 Updates
Positive Updates
Strong Financial Performance
Adjusted EBITDA increased 28% year-over-year, and adjusted EPS grew 32% year-over-year. Revenue outperformed expectations with a 16% increase, driven by robust global demand.
Room Night and Booking Growth
Room nights reached 309 million, an 8% year-over-year increase, exceeding prior expectations. Gross bookings rose by 13% and revenue by 16%.
Expansion in Asia and Alternative Accommodations
Asia saw low double-digit growth in room nights. Booking.com's alternative accommodation listings reached 8.4 million, an 8% year-over-year increase, with a 10% growth in alternative accommodation room nights.
Development of Connected Trip Vision
Connected Trip transactions grew over 30% year-over-year, and flight tickets increased by 44% year-over-year.
Advancement in AI Capabilities
Investments in AI have led to improved customer service efficiencies and enhanced user experiences across platforms such as Priceline and OpenTable.
Strong Cash and Liquidity Position
The company ended the quarter with $18.2 billion in cash and investments, driven by $3.1 billion in free cash flow.
Genius Loyalty Program Success
Over 30% of active travelers are in higher Genius tiers, booking mid-50% of Booking.com's total room nights.
Negative Updates
US Market Challenges
The U.S. remains the slowest-growing region with lower ADRs, shorter length of stay, and a booking window suggesting cautious consumer spending.
Geopolitical and Economic Uncertainties
There are concerns about macroeconomic and geopolitical uncertainties potentially impacting future consumer behavior.
Middle East Impact
Events in the Middle East impacted global growth by about 1% in June and 1/3 of a percentage point overall in the second quarter.
Company Guidance
During the second quarter of 2025, Booking Holdings reported strong financial performance, with room nights reaching 309 million, an 8% year-over-year increase, gross bookings up 13%, and revenue up 16%. The company highlighted robust demand across Europe and Asia, with Asia experiencing low double-digit growth. The U.S., although the slowest-growing region, showed slight improvement from the first quarter. Adjusted EBITDA increased by 28% year-over-year, and adjusted earnings per share grew by 32%. The guidance for the third quarter anticipates room night growth between 3.5% and 5.5%, gross bookings to rise by 8% to 10%, and revenue growth between 7% and 9%. For the full year 2025, Booking Holdings expects low double-digit growth in gross bookings and revenue, mid-teens growth in adjusted EBITDA, and adjusted EPS to rise by high teens, with adjusted EBITDA margins expanding by about 125 basis points.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
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.85
Very Positive
Balance Sheet
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.45
Neutral
Cash Flow
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.78
Positive
| 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
Neutral
5364.25
Price Trends
5566.13
Negative
5221.67
Positive
5043.61
Positive
Market Momentum
-49.99
Positive
38.40
Neutral
17.30
Positive
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 5364.25 is below the 20-day moving average (MA) of 5581.85, below the 50-day MA of 5566.13, and above the 200-day MA of 5043.61, indicating a neutral trend. The MACD of -49.99 indicates Positive momentum. The RSI at 38.40 is Neutral, neither overbought nor oversold. The STOCH value of 17.30 is Positive, 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $24.82B | 23.89 | 129.04% | 0.42% | 5.69% | 47.33% | |
74 Outperform | $2.07B | 37.39 | 8.76% | ― | 3.03% | 187.03% | |
68 Neutral | $75.19B | 29.20 | 33.26% | ― | 10.23% | -44.56% | |
67 Neutral | $40.48B | 17.19 | 12.49% | 0.47% | 16.23% | 56.05% | |
65 Neutral | $9.00B | 107.25 | 22.38% | ― | 18.13% | -55.21% | |
64 Neutral | $175.20B | 37.60 | -146.32% | 0.68% | 11.72% | 0.51% | |
61 Neutral | $16.99B | 10.66 | -7.51% | 3.25% | 1.53% | -15.49% |
* Consumer Cyclical Sector Average
Performance Comparison
BKNG
Booking Holdings
5,364.25
1,951.60
57.19%
TCOM
Trip.com Group Sponsored ADR
59.48
17.62
42.09%
EXPE
Expedia
192.63
66.31
52.49%
MMYT
Makemytrip
94.53
1.83
1.97%
TRIP
TripAdvisor
17.79
4.09
29.85%
ABNB
Airbnb
118.30
4.68
4.12%
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.