The stock of Booking Holdings (NASDAQ: BKNG) has increased by approximately 50% in the past year, driven by strong revenue growth, AI-based innovation, and a well-diversified global presence. However, with a high price-to-earnings ratio of 38.5x, it raises the question: how much of this valuation is based on solid fundamentals, and how much is built on high hopes?
Recently, Zacks.com users have been paying close attention to Booking Holdings (BKNG). This makes it worthwhile to examine what the stock has in store.
Texas Attorney General Ken Paxton secured a $9.5 million settlement with Booking Holdings to resolve a lawsuit in which Paxton alleged that the online travel agency engaged in deceptive “junk fee” practices. The lawsuit alleged that Booking Holdings, which operates Booking.com, Priceline.com and Kayak.
Booking Holdings outperformed peers in Q2, with strong overseas bookings and market share gains despite U.S. macroeconomic weakness. I am upgrading my rating to neutral, as the stock is now slightly cheaper and Q2 results exceeded expectations, but valuation remains a concern. The company's broad supply, strong margins, and alternative accommodation growth are positives, but Expedia's rewards program and choppy trends are risks.
Booking Holdings continues to outperform competitors with strong revenue growth, increasing market share, and industry-leading profitability across all segments. The company's marketplace model, operational leverage, and aggressive buybacks drive margin expansion and robust EPS growth, supporting a compelling investment case. AI disruption fears are overblown; Booking's value proposition remains unmatched, and current valuation offers an attractive entry.
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Why investors should use the Zacks Earnings ESP tool to help find stocks that are poised to top quarterly earnings estimates.
Zacks.com users have recently been watching Booking Holdings (BKNG) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
Harry Sommer, Norwegian Cruise Line Holdings CEO, joins 'Power Lunch' to discuss Sommer's quarterly earnings results, demand for the company's products and much more.
BKNG posts 32% y/y EPS growth and 16% revenue jump in Q2, fueled by payments, travel demand and AI-driven initiatives.
Booking Holdings said Tuesday (July 29) that U.S. consumers reined in their travel spending in the second quarter, while their Asian and European counterparts picked up the slack. The parent of Booking.com, Priceline, Agoda, Kayak, and OpenTable said the U.S. was its slowest-growing region, up by low single digits in the quarter.
Booking Holdings Inc. (NASDAQ:BKNG ) Q2 2025 Earnings Conference Call July 29, 2025 4:30 PM ET Company Participants Ewout Lucien Steenbergen - Executive VP & CFO Glenn D. Fogel - President, CEO & Director Conference Call Participants Brian Thomas Nowak - Morgan Stanley, Research Division Douglas Till Anmuth - JPMorgan Chase & Co, Research Division Eric James Sheridan - Goldman Sachs Group, Inc., Research Division Justin Post - BofA Securities, Research Division Kevin Campbell Kopelman - TD Cowen, Research Division Mark Stephen F.