Current Situation Surrounding Booking Holdings' Shares
It's no secret that Booking Holdings (NASDAQ: BKNG) and its rival Expedia (NASDAQ: EXPE) have been making waves in the stock market lately. While BKNG has soared approximately 42% since 2024's beginning, outpacing the S&P 500's 28% rise, EXPE has followed close behind with a 30% boost. But what's the deal here?
Booking Holdings' Q4 results were nothing short of extraordinary. The company surpassed expectations across the board, with revenues and profitability all seeing a significant boost. This success can be attributed to an extended booking window and growth in all geographical regions. The firm's focus on AI and technology has played a significant role, improving efficiency and enhancing the customer experience.
They're using AI in innovative ways, such as AI-powered trip planning and a Priceline AI travel assistant named Penny. Plus, they're updating mobile applications and payment systems to streamline operations and boost user engagement. If you're looking for a less volatile investment, you might want to consider the high-quality portfolio, which has consistently outperformed the S&P with over 91% returns since its inception.
In Q4 2024, BKNG's revenues increased by 14% year-on-year to reach $5.5 billion, powered by a 17% surge in gross bookings to $37.2 billion. Room nights booked, rental car days, and airline tickets all saw notable growth. Adjusted EBITDA rose by 26% year-on-year to $1.8 billion, driven by stronger revenue performance and lower-than-expected fixed operating expenses. The earnings per share even jumped to $41.55, marking a 30% increase.
Booking Holdings' alternative accommodations segment also demonstrated steady growth in Q4, with listings reaching 7.9 million – an 8% year-on-year increase. Just for context, analysts forecast Booking Holdings' revenues to climb to $26.2 billion for 2025, representing a 10% year-on-year increase.
If you're interested in predicting the future of BKNG, it's worth noting that the company expects a 2-4% year-on-year revenue increase for the first quarter of 2025, along with a 5-7% rise in gross bookings. For the full year, revenue and gross bookings are projected to grow around the mid-single-digit percentage range.
Now, let's compare Booking Holdings to its peers. If you want more comparisons across various industries, you should definitely check out Peer Comparisons.
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[1] Source: CNBC[2] Source: Zacks[3] Source: Motley Fool[4] Source: Yahoo Finance
- Booking Holdings' strong performance in Q4 2024 led to a significant increase in its stock value, with booking revenue reaching $5.5 billion and gross bookings surging by 17%.
- While both Booking Holdings and Expedia have seen significant growth in their stock prices, Booking Holdings' booking valuation has outpaced Expedia's, with a 42% increase since 2024's beginning compared to Expedia's 30%.
- The Australian financial news website Aussiedlerbote reported that Booking Holdings' 2025 revenue projections are anticipating a 10% year-on-year increase, with gross bookings also expected to climb.
- With its consistent focus on AI, technology, and customer experience, Booking Holdings' bkng revenue and stock have continued to outpace their peers and the S&P 500, setting the company up for further success in the travel industry by 2025.
