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Booking Holdings Inc. (BKNG) Stock

Booking Holdings Inc. Stock Details, Movements and Public Alerts

Booking Holdings (BKNG): The $176B Online Travel Giant Dominating Europe with Booking.com and Priceline

When Glenn Fogel ascended to CEO of Booking Holdings in 2017, the Dutch-American travel giant was already dominant—Booking.com commanded 60%+ market share in European hotel bookings, while Priceline and Agoda filled gaps in North America and Asia. But Fogel inherited challenges: Airbnb was devouring alternative accommodation share, Google threatened to disintermediate OTAs with direct hotel booking, and regulatory scrutiny intensified across the EU. Seven years later, Fogel's strategic repositioning is paying off: revenue grew 16% year-over-year to $25 billion as international travel surged post-COVID, while Booking.com's 'Genius' loyalty program and connected trip vision (flights + hotels + experiences in one platform) defend against Airbnb and Expedia. At $5,060, down 13% from $5,829 highs, Booking trades at 21x forward earnings—steep for a mature OTA, yet justified by 34% operating margins, 226% ROE, and secular tailwinds in cross-border travel and digital experiences booking.

52-Week Range

$5,829.37 - $4,082.14

-12.46% from high · +25.00% from low

Avg Daily Volume

228,575

20-day average

100-day avg: 202,319

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

37.83

Above market average

Forward P/E

21.37

Earnings expected to grow

PEG Ratio

1.16

Reasonably valued

Price to Book

34.95

EV/EBITDA

20.65

EPS (TTM)

$143.21

Price to Sales

7.02

Beta

1.35

Similar volatility to market

How is BKNG valued relative to its earnings and growth?
Booking Holdings Inc. trades at a P/E ratio of 37.83, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple. Looking ahead, the forward P/E of 21.37 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 1.16 indicates reasonable value when growth is considered.
What is BKNG's risk profile compared to the market?
With a beta of 1.35, Booking Holdings Inc. is roughly as volatile as the market, moving in line with broad market trends. This moderate beta suggests the stock offers market-level returns without excessive volatility. The price-to-book ratio of 34.95 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

19.20%

Operating Margin

33.70%

EBITDA

$8.95B

Return on Equity

225.70%

Return on Assets

17.60%

Revenue Growth (YoY)

16.00%

Earnings Growth (YoY)

-38.20%

How profitable and efficient is BKNG's business model?
Booking Holdings Inc. achieves a profit margin of 19.20%, meaning it retains $19.20 from every $100 in revenue after all expenses. This is an impressive margin, indicating strong pricing power and efficient cost management that allows the company to generate substantial profits. The operating margin of 33.70% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 225.70% and ROA at 17.60%, the company generates strong returns on invested capital.
What are BKNG's recent growth trends?
Booking Holdings Inc.'s revenue grew by 16.00% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings decreased by 38.20% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against TRAVEL SERVICES industry averages for proper context.

Dividend Information

Dividend Per Share

$36.70

Dividend Yield

0.68%

Ex-Dividend Date

Sep 5, 2025

Dividend Date

Sep 30, 2025

What dividend income can investors expect from BKNG?
Booking Holdings Inc. offers a dividend yield of 0.68%, paying $36.70 per share annually. This modest yield below 2% suggests the company prioritizes growth investments over current income. While the dividend provides some return, investors are likely attracted more by capital appreciation potential than income generation. To receive the next dividend, shares must be purchased before the ex-dividend date of Sep 5, 2025.
How reliable is BKNG's dividend for long-term investors?
The dividend sustainability can be assessed through the payout ratio - Booking Holdings Inc. pays $36.70 per share in dividends against earnings of $143.21 per share, resulting in a payout ratio of 25.63%. This conservative payout below 30% indicates excellent dividend safety with substantial room for future increases. The company retains most earnings for growth while still rewarding shareholders. The next dividend payment is scheduled for Sep 30, 2025.

Company Size & Market

Market Cap

$175.6B

Revenue (TTM)

$25.02B

Revenue/Share (TTM)

$759.60

Shares Outstanding

32.41M

Book Value/Share

-$205.32

Asset Type

Common Stock

What is BKNG's market capitalization and position?
Booking Holdings Inc. has a market capitalization of $175.6B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 32.41M shares outstanding, the company's ownership is relatively concentrated. As a major player in the TRAVEL SERVICES industry, it competes with other firms in this sector.
How does BKNG's price compare to its book value?
Booking Holdings Inc.'s book value per share is -$205.32, while the current stock price is $5,102.86, resulting in a price-to-book (P/B) ratio of -24.85. Trading below book value can indicate the market perceives challenges ahead, or it might represent a value opportunity if the assets are quality and earnings can recover. Value investors often screen for P/B ratios below 1.0. As a common stock, this represents equity ownership with voting rights.

Analyst Ratings

Analyst Target Price

$6,107.78

19.69% upside potential

Analyst Recommendations

Strong Buy

4

Buy

21

Hold

14

Sell

0

Strong Sell

0

How reliable are analyst predictions for BKNG?
39 analysts cover BKNG with 64% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $6,107.78 implies 19.7% upside, but targets are often adjusted to follow price moves rather than predict them.
What is the Wall Street consensus on BKNG?
Current analyst recommendations:4 Strong Buy, 21 Buy, 14 Hold, 00The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Oct 6, 2025, 06:44 PM

Technical Indicators

RSI (14-day)

34.47

Neutral

50-Day Moving Average

$5,507.42

-7.35% below MA-50

200-Day Moving Average

$5,152.77

-0.97% below MA-200

MACD Line

-48.71

MACD Signal

-30.90

MACD Histogram

-17.81

Bearish

What does BKNG's RSI value tell investors?
The RSI (Relative Strength Index) for BKNG is currently 34.47, indicating the stock is showing bearish momentum (30-40 range). Selling pressure is evident but not extreme. This often occurs during pullbacks in uptrends or early stages of downtrends. Combined with the price being below the 50-day moving average, this confirms bearish conditions.
How should traders interpret BKNG's MACD and moving average crossovers?
MACD analysis shows the MACD line at -48.71 below the signal line at -30.90, with histogram at -17.81. This bearish crossover indicates downward pressure. The wide histogram confirms strong momentum. The 50-day MA ($5,507.42) is above the 200-day MA ($5,152.77), forming a golden cross pattern that typically signals a long-term uptrend. Price is currently below both MAs, confirming weakness.

Indicators last updated: Oct 8, 2025, 12:50 AM

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Booking Holdings Inc. (BKNG) Stock Analysis 2025: Complete Investment Guide

The OTA Giant Navigating the Post-Pandemic Boom

Booking Holdings' 2025 story is one of triumphant recovery and strategic evolution. After collapsing to $1,100 during March 2020 lockdowns, the stock has climbed 360% to $5,060 as pent-up travel demand fueled a multi-year boom. Glenn Fogel capitalized brilliantly: while Airbnb stumbled with host supply shortages and Expedia underwent leadership chaos, Booking.com expanded its alternative accommodations inventory 40% (now 7.8 million homes/apartments), launched Genius loyalty tiers capturing 50 million frequent travelers, and invested $2 billion in AI-powered trip personalization. The result? Booking processed 900 million room nights in 2024, up 8% from pre-COVID 2019, while revenue per booking surged 15% as travelers opted for premium properties and ancillary services like travel insurance and airport transfers.

Business Model & Competitive Moat

Booking operates a classic two-sided marketplace connecting travelers with accommodations, flights, and experiences:

  • •Booking.com (75% of revenue): Europe's dominant hotel/vacation rental platform with 1.2M+ properties; merchant model (Booking buys inventory wholesale) enables flexible pricing and upsells
  • •Priceline.com (15% of revenue): U.S.-focused opaque/Express Deals model offering discounted rates on hotels and rental cars; strong in last-minute bookings
  • •Agoda (8% of revenue): Asia-Pacific specialist with deep inventory in Thailand, Indonesia, Japan; localized payment methods (Alipay, GrabPay) critical for penetration
  • •Kayak/OpenTable (2% of revenue): Metasearch advertising (Kayak) and restaurant reservations (OpenTable) provide high-margin ancillary revenue

Booking's moat is network effects and geographic dominance. In Europe, Booking.com's 60% market share creates a virtuous cycle: travelers default to Booking because it lists every hotel, while hotels pay 15-25% commissions because they can't afford to miss Booking's 500 million annual European visitors. The company's $4 billion annual performance marketing spend (Google/Facebook ads) locks competitors out—smaller OTAs can't match Booking's customer acquisition efficiency due to scale advantages. Additionally, Booking.com's merchant model (buying hotel inventory wholesale) provides pricing flexibility and ancillary revenue opportunities (insurance, car rentals) that Airbnb's host-centric model lacks.

Financial Performance

  • •Revenue: $25B trailing (+16% YoY driven by international travel recovery and alternative accommodations growth)
  • •Operating Margin: 33.7%—exceptional profitability reflecting platform leverage and merchant model advantages
  • •Profit Margin: 19.2%, compressed from 25%+ in 2019 due to higher marketing spend recapturing share
  • •Return on Equity: 226% (artificially high from aggressive buybacks creating negative equity)
  • •Earnings Decline: $143.62 EPS (down 38% YoY as marketing ramp and Europe weakness hit profitability)
  • •Dividend: $36.70 special dividend (0.68% yield); Booking prefers buybacks ($20B program) over recurring payouts

The 38% earnings decline is concerning but reflects transitional dynamics rather than structural decay. Booking increased marketing spend 25% year-over-year to recapture share from Google's direct booking initiatives and Airbnb's brand push. Revenue growth of 16% outpaced expense growth of 18%, suggesting operating leverage will return as marketing efficiency improves. The company's $9 billion EBITDA and fortress balance sheet ($12 billion cash) provide cushion for continued investment in AI trip planning and connected travel experiences.

Growth Catalysts

  • •Alternative Accommodations Expansion: 7.8M vacation rentals (up from 5.6M in 2020) closing gap with Airbnb's 7.5M; targeting 10M+ by 2027
  • •Connected Trip Vision: AI-powered platform bundling flights, hotels, experiences, ground transport in personalized itineraries—expanding TAM from $700B to $1.2T
  • •Genius Loyalty Program: 50M members receiving 10-25% discounts drive repeat bookings; lifetime value 3x higher than non-Genius travelers
  • •Flights Acceleration: Flight bookings grew 30% YoY; Booking targeting 10% revenue mix (from 5% today) by 2026 as travelers consolidate on single platform
  • •Experiences/Activities: $500M annual revenue (still nascent); addressing $180B global tours/activities market dominated by fragmented local operators

Risks & Challenges

  • •Google Disintermediation: Google's 'Book on Google' feature enabling direct hotel booking could slash Booking's traffic 15-20% if widely adopted
  • •Regulatory Risk: EU Digital Markets Act designating Booking as 'gatekeeper' may force commission reductions or preferential ranking bans
  • •Airbnb Competition: If Airbnb successfully adds hotels (currently 10% of listings), it could attack Booking's core European hotel business
  • •Macro Recession Risk: Travel discretionary spend collapses in downturn; 2008-2009 saw Booking revenue decline 8% and earnings fall 35%
  • •Marketing Dependency: $4B annual Google/Facebook spend creates platform risk; algorithm changes or CPM inflation crush profitability

Competitive Landscape

CompanyMarket CapRevenueP/E Ratio
Booking Holdings (BKNG)$176B$25B38x (21x forward)
Airbnb (ABNB)$92B$11B42x
Expedia Group (EXPE)$22B$13B18x
Trip.com (TCOM)$32B$7B25x

Booking's $176 billion market cap dwarfs Expedia ($22B) and approaches double Airbnb ($92B), reflecting superior profitability and scale. While Airbnb commands a premium valuation (42x P/E) due to growth narrative, Booking's 34% operating margins vs. Airbnb's 18% demonstrate platform maturity. Expedia trades at a discount (18x P/E) due to chronic underperformance and management turnover. Trip.com dominates China but faces regulatory headwinds and domestic competition from Meituan.

Who Is This Stock Suitable For?

Perfect For

  • ✓Travel recovery bulls with 3-5 year horizon betting on international travel normalization
  • ✓Quality growth investors seeking 34% margin platform businesses with network effects
  • ✓OTA consolidation believers expecting Booking to gain share from Expedia and independent hotels
  • ✓Value growth seekers attracted to 21x forward P/E for business growing 10-12% annually with buybacks

Less Suitable For

  • ✗Deep value investors (21x forward P/E is mid-market, not cheap)
  • ✗Dividend income seekers (0.68% yield negligible; Booking prioritizes buybacks over dividends)
  • ✗Recession-fearful investors (travel is first discretionary cut in downturn)
  • ✗ESG investors concerned about carbon footprint of travel promotion and labor practices in gig economy

Investment Thesis

Booking Holdings represents a mature platform business trading at growth stock multiples—justified by structural competitive advantages and secular tailwinds in digital travel booking. At 21x forward earnings, the market prices in 10-12% annual growth, requiring Booking to execute on three fronts: (1) defend European hotel dominance against Google and Airbnb; (2) scale alternative accommodations to match Airbnb's breadth; (3) build connected trip ecosystem bundling flights, hotels, and experiences. Glenn Fogel's track record inspires confidence—he successfully integrated acquisitions (OpenTable, Kayak), pivoted to merchant model improving margins 500bp, and navigated COVID without equity dilution.

The bull case hinges on international travel normalization: pre-COVID, cross-border trips generated 70% of Booking's revenue; 2025 levels remain 15% below 2019 in Asia due to China's slow reopening. If Asian travel recovers to 2019 baseline by 2026, Booking's revenue could jump $3-4 billion (12-15% growth) without market share gains. Layer in connected trip monetization ($50-100 incremental revenue per trip from flights/experiences/insurance) and Booking could deliver 15% EPS growth—justifying 28x P/E and $7,000+ stock price. The bear case is Google disintermediation plus Airbnb hotel expansion crushing margins, compounded by recession slashing discretionary travel. At $5,060, the stock offers reasonable risk/reward for travel bulls but lacks margin of safety.

Conclusion

Buy for growth investors with 3-5 year horizon and conviction on travel recovery. Booking won't triple from here, but the combination of 10-12% organic growth, $20B buyback program, and connected trip optionality creates a path to 15-18% annual returns. Avoid if recession-fearful or unwilling to pay 21x forward earnings. Use weakness below $4,800 (19x forward) to accumulate position over 6-12 months rather than chasing at current levels.
Bull Case
$7,200 (42% upside) - Asian travel recovers to 2019, connected trip adds $4B revenue, Google threat fails to materialize
Base Case
$6,100 (21% upside) - Steady 10-12% growth, market share stable, margins expand to 36% by 2027
Bear Case
$3,800 (25% downside) - Recession cuts travel 15%, Google disintermediates 10% of traffic, Airbnb takes hotel share

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