Investors were advised to focus on the durability of ADR and RevPAR, as well as management’s expectations for the industry in 2025. According to InvestingPro’s comprehensive analysis, BKNG maintains a "GREAT" Financial Health Score of 3.28, suggesting strong fundamentals despite market uncertainties. The analyst also mentioned the recent volatility in the stock prices of BKNG, EXPE, and ABNB, which was attributed to market reactions to OpenAI’s upcoming release of ’Operator’, a feature designed to assist users with tasks such as booking reservations and shopping. However, the impact of this new feature on online travel agencies (OTAs) remains to be seen.
Booking Holdings (NASDAQ:BKNG) was highlighted for its resilient upper-funnel trends and its success in capturing or maintaining market share in the U.S. and alternative accommodations sectors during the fourth quarter. The company’s strong performance is reflected in its 11.74% revenue growth over the last twelve months. The analyst also mentioned Booking Holdings’ cost reduction plan as a positive move. In contrast, Expedia (NASDAQ:EXPE)’s investments in Vrbo and international markets, along with Airbnb’s expansion efforts, were acknowledged but did not lead to a rating change.
The analyst’s preview of Q4 earnings for online travel companies remarked on the industry’s resilience despite mixed upper-funnel trends. With BKNG’s next earnings report scheduled for February 20, 2025, and analysts maintaining a bullish consensus, investors are closely watching the company’s performance. Consumer confidence showed improvement quarter over quarter, though it still lagged behind pre-pandemic levels. InvestingPro subscribers have access to 12 additional key insights and comprehensive financial metrics that could help evaluate BKNG’s upcoming earnings potential. The report also noted that while total intended vacations remained below 2019 figures, intended foreign vacations were above pre-pandemic levels.
Travel demand’s resilience was further supported by solid TSA checkpoint throughput, which continued to grow year over year and remained above 2019 levels. The analyst pointed out that average daily rates (ADRs) and revenue per available room (RevPAR) both increased modestly year over year, with RevPAR surpassing last year’s and 2019’s figures.
Investors were advised to focus on the durability of ADR and RevPAR, as well as management’s expectations for the industry in 2025. According to InvestingPro’s comprehensive analysis, BKNG maintains a "GREAT" Financial Health Score of 3.28, suggesting strong fundamentals despite market uncertainties. The analyst also mentioned the recent volatility in the stock prices of BKNG, EXPE, and ABNB, which was attributed to market reactions to OpenAI’s upcoming release of ’Operator’, a feature designed to assist users with tasks such as booking reservations and shopping. However, the impact of this new feature on online travel agencies (OTAs) remains to be seen.
In other recent news, Booking Holdings has received a revised price target of $6,000 from Mizuho (NYSE:MFG), reflecting the firm’s increased expectations for the company’s growth rate. This was based on Mizuho’s projections of an earnings growth of around 20% for fiscal year 2025, due in part to the company’s share buyback program. The firm also raised its fiscal year 2026 EBITDA estimate for Booking Holdings by 2%, reaching $11.1 billion.
In addition, Booking Holdings has extended CFO David I. Goulden’s part-time role through March 2025, demonstrating its commitment to maintaining leadership continuity in its finance operations. Meanwhile, TD Cowen has maintained a "Buy" rating for Booking Holdings, anticipating an 8% increase in booked nights in 2024.
Furthermore, Booking Holdings recently reported robust financial performance, with nearly 300 million room nights booked, marking an 8% increase from the previous year, and revenue rising to $8 billion, a 9% surge from the prior year. However, the Federal Trade Commission has implemented a rule aiming to ban deceptive pricing and hidden fees in the short-term lodging industry, which could potentially impact Booking Holdings’ operations. These are the recent developments surrounding Booking Holdings.
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