3. Booking Holdings Inc. (NASDAQ:BKNG)
Number of Hedge Fund Holders: 97
Booking Holdings Inc. (NASDAQ:BKNG) is a leader in providing online travel and related services, offering a range of services such as hotel bookings, car rentals, flight reservations, and dining reservations. It is one of the best consumer discretionary stocks to buy according to hedge funds.
Through its well-known brands like Booking.com, Priceline, Agoda, Kayak, and OpenTable, the company strives to provide a complete travel planning experience. With a strong presence across over 220 countries and territories, Booking (NASDAQ:BKNG) has cemented its role as a leading provider in the online travel market, connecting users with a variety of travel options worldwide.
Booking (NASDAQ:BKNG) is well-positioned for continued growth, owing to a shift in traveler preferences and its ability to adapt to the evolving market. A survey by Trends Global Survey highlights that 80% of travelers now prefer to book their entire trip online, with Millennials and Gen Z leading this trend.
This shift towards online travel agencies (OTAs) presents a promising growth opportunity for Booking (NASDAQ:BKNG), which caters to this demand by providing a comprehensive platform where users can book flights, hotels, car rentals, and experiences, often at discounted rates.
In the second quarter, Booking (NASDAQ:BKNG) saw its revenue rise by 7.3% year-over-year, reaching $5.86 billion, surpassing Wall Street’s expectations of $5.77 billion. The company also saw a 7% increase in room nights booked, totaling 287 million. Gross travel bookings grew to $41.4 billion, reflecting a 4% increase compared to the previous year. The company’s EPS reached $44.38, marking a 27% year-over-year increase.
Booking’s (NASDAQ:BKNG) diverse service offerings continue to expand. The company’s emphasis on integrating artificial intelligence (AI) and technology has played a crucial role in this growth.
Innovations such as a generative AI-assisted trip planner and upgraded mobile applications have streamlined booking processes and enhanced user experiences. Additionally, the company has broadened its revenue streams with significant advancements in flights, ground transportation, and restaurant reservations through OpenTable.
While platforms like Airbnb, Inc. (NASDAQ:ABNB) have gained popularity, there remains a strong demand for traditional hotel accommodations and the convenience offered by OTAs. The coexistence of these options suggests a thriving market for both, with Booking (NASDAQ:BKNG) continuing to benefit from travelers’ need for comprehensive, efficient booking solutions.
In Q1, 97 hedge funds held stakes in Booking (NASDAQ:BKNG), with positions worth $7.9 billion. As of the first quarter, Fisher Asset Management is the most significant shareholder in the company and has a position worth $1.42 billion.
Wedgewood Partners stated the following regarding Booking Holdings Inc. (NASDAQ:BKNG) in its Q2 2024 investor letter:
“Booking Holdings Inc. (NASDAQ:BKNG) contributed to performance as travel spending across the U.S. and Europe remains quite healthy, whereas the Company took share in alternative accommodations, and looks set to expand margins after a few years of reinvestment. The Company has also been aggressively reducing its share count at reasonably attractive valuation multiples. Booking should be able to compound earnings at an attractive, double-digit rate for the next few years given these various initiatives.”
