Booking Holdings’ BKNG shares have gained 40% year to date (YTD), compared with the Zacks Retail-Wholesale sector’s growth of 26.7%. It has also outperformed the Zacks Internet-Commerce industry and its peers like Alibaba BABA, BigCommerce BIGC and Beyond, Inc. BYON.
In the same time frame, shares of BABA have gained 17.3%, while shares of BIGC and BYON have lost 36.5% and 77.7%, respectively. The industry has appreciated 36%.
This outperformance of BKNG’s shares can be attributed to the strong top-line growth and expanding partnerships. For the nine months ended Sept. 30, 2024, revenues increased 10.17% year over year to $18.26 billion, driven by strategic initiatives and expanded service offerings, including alternative accommodation growth, AI capability development and market expansion in Asia.
For the nine months ended Sept. 30, 2024, the platform's alternative accommodation listings expanded to 7.9 million properties, indicating a 10% year-over-year increase.
Booking Holdings Inc. Price and Consensus
Booking Holdings Inc. price-consensus-chart | Booking Holdings Inc. Quote
Will BKNG’s Partnership Aid the Top Line?
Booking Holding’s Agoda recently announced a partnership with Amadeus, a global travel and technology solution provider, to enable its users to find suitable deals on flights and to get exposed to relevant and suitable targeted airline content.
BKNG’s strategic agreement will be initiated in Thailand and subsequently be expanded to other regions in Asia.
Agoda aims to leverage the Amadeus Travel Platform and a wide network of partner airlines to provide its customers the facility to book customized and relevant services and products.
BKNG’s strategic alliance should enable it to drive customer engagement and momentum by enhancing connected experience and deploying technology to increase consumer satisfaction.
Agoda’s partnership will be incorporated into BKNG’s relationship with Amadeus to allow quick integration.
Booking Holdings' AI Integration Bodes Well for Investors
BKNG’s AI integration across its platforms aims to enhance customer experience and provide value. The company’s personalized AI-powered portfolio provided to its customers and partners increases operational efficiency.
Booking Holdings’ AI Trip Planner is driving the development of new and enhanced technologies, including a Smart Filter that makes more than 200 probable search filters visible and findable via a free text interface. Further, this integration also provides BKNG with customer insights and extends to the business side of the platform as well.
BKNG is leveraging AI to assist properties in producing responses to queries leading to high response rates.
The company is also testing the incorporation of GenAI into customer-service processes to increase experience for its customers.
BKNG Offers Strong Guidance
For the fourth quarter of 2024, room night’s growth is expected between 6% and 8%. Gross Bookings’ growth is expected in the 7-9% range.
Fourth-quarter revenues are expected to grow between 7% and 9%. Adjusted EBITDA is expected between $1.6 billion and $1.65 billion.
For 2024, gross bookings growth is expected to be about 8%.
For 2024, growth in revenues is expected to be 10%. Adjusted EBITDA growth is expected between 13% and 14%. Earnings are expected to grow at the high-teens percentage rate.
Estimates for BKNG Favorable
The Zacks Consensus Estimate for fourth-quarter 2024 earnings is currently pegged at $35.92 per share, down 2.4% in`the past 30 days. The consensus mark however indicates year-over-year growth of 12.25%.
The consensus mark for fourth-quarter 2024 revenues is pegged at $5.19 billion, indicating year-over-year growth of 8.45%.
For 2024, the Zacks Consensus Estimate for revenues is pegged at $23.42 billion, indicating year-over-year growth of 9.62%.
The consensus mark for earnings is pegged at $181.49 per share, up 2.6% in the past 30 days. It indicates 19.23% year-over-year growth.
The company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 16.75%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Should You Invest in BKNG Stock Now?
BKNG’s shares are currently overvalued, as indicated by a Value Score of C.
However, we expect BKNG’s shares to benefit from expanding clientele and customer base. AI integration into its platforms bodes well for investors.
BKNG currently has a Zacks Rank #2 (Buy), which implies that investors may want to consider adding the stock to their portfolio.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
