Yahoo Finance Here's How Much You'd Have If You Invested $1000 in Booking Holdings a Decade Ago
For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Booking Holdings (BKNG) ten years ago? It may not have been easy to hold on to BKNG for all that time, but if you did, how much would your investment be worth today?
Booking Holdings' Business In-Depth
With that in mind, let's take a look at Booking Holdings' main business drivers.
Norwalk, CT-based Booking Holdings Inc. is one of the largest online travel companies in the world. The company’s travel-related offerings cover hotel rooms, airline tickets, rental cars, vacation packages, cruises, “things to do” at customer destinations and travel insurance.
It has agreements with hotels, airline companies, cruise ships, transport companies and vacation providers, which enable it to accept bookings on their behalf. Information on these offerings and customer reviews are available on the company’s owned or operated websites, thus helping customers make informed decisions.
Services in the United States are provided through the Booking Holdings.com website. The company employs two marketing strategies in the country, “price-disclosed” and “name your own price” or “opaque”.
International results are comprised of revenues from rentalcars.com, Agoda and Kayak. While rentalcars.com allows it to take rental car reservations, Kayak enables comparative shopping of Booking Holdings inventories. Agoda, on the other hand, caters primarily to consumers in the Asian-Pacific region, offering flight, ground transportation, and activity reservation services. The acquisition of OpenTable, which has allowed it to expand into the restaurant reservations space, also contributes to the international revenues.
Booking Holdings reported revenues of $21.4 billion in 2023. Agency revenues accounted for 51% of revenues. Merchant revenues contributed 44% of revenues. It also generated 5% of 2023 revenues through advertisements on its websites, classified as the Advertising & Other category.
The agency model is more lucrative for the company. It generates revenues from travel-related transactions, which include travel reservation commissions, GDS reservation booking fees and certain travel insurance fees.
Merchant model revenues are also derived from travel-related transactions, which include ancillary fees, credit card processing rebates, and customer processing fees, along with the ones included in the agency model.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Booking Holdings, if you bought shares a decade ago, you're likely feeling really good about your investment today.
According to our calculations, a $1000 investment made in June 2014 would be worth $3,050.92, or a 205.09% gain, as of June 5, 2024. Investors should keep in mind that this return excludes dividends but includes price appreciation.
The S&P 500 rose 174.46% and the price of gold increased 78.41% over the same time frame in comparison.
Analysts are anticipating more upside for BKNG.
Booking Holdings is benefiting from a favorable travel demand environment, owing to the growing demand for global leisure travel demand. Substantial improvement in its booking trends remains a major tailwind. Solid momentum in booked room nights is contributing well to the gross bookings growth. Strong growth in rental car and airline ticket units is a major positive. Also, strong momentum across the merchant, and advertising and other businesses are other positives. The growing alternative accommodation business and flight capabilities are tailwinds for the company. However, the declining trend in agency bookings is negatively affecting its top-line growth. Also, geopolitical tensions in the Middle East region remained concerning for the company. The stock has underperformed its industry on a year-to-date basis.
Shares have gained 5.43% over the past four weeks and there have been 12 higher earnings estimate revisions for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.
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Booking Holdings Inc. (BKNG) : Free Stock Analysis Report
