$BKNG (Booking Holdings Inc) has just announced its Q4 earnings. On the surface, it seems the travel industry and with it, Booking is not slowing down:
- Room nights grew 8% and gross bookings grew 16%
- Revenue grew 16% (11% CC)
- Adjusted EPS grew 17%
- FCF grew 120% in Q4 and 15% in FY (~6.5% FCF yield)
The outlook looks similarly strong. Booking guides for low-teens revenue growth and mid-teens EPS growth. It also announced a 25-to-1 stock split, which will happen in Q1 2026. As CEO Glenn Fogel highlighted, 2026 will be mostly about improving the platform's AI capabilities, that will be influential for the company's future.
At the current price, the company still seems undervalued, and 10%+ returns seem viable going forward. But the stock itself could face pressure as the market is still assessing the AI-related risks.... Show More
Not investment advice. The author may have financial interests in the mentioned instruments.
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