2. Booking Holdings Inc. (NASDAQ:BKNG)
TTM Net Income: $5.03 Billion
5-Year Net Income CAGR: 3.89%
Number of Hedge Fund Holders: 96
Booking Holdings Inc. (NASDAQ:BKNG) is a leading online travel technology company that operates several well-known platforms, including Booking.com, Priceline, Agoda, KAYAK, and OpenTable. The company offers a wide range of travel services, allowing customers to book accommodations, rental cars, flights, vacation packages, and other travel-related services. With operations in over 200 countries and websites available in about 40 languages, the company caters to a global audience seeking convenient travel solutions.
Booking Holdings Inc. (NASDAQ:BKNG) is focused on enhancing the travel experience through several initiatives. These include advancing the company’s “Connected Trip” vision, expanding offerings, developing AI capabilities, and growing alternative accommodations.
The company’s alternative accommodation offerings at Booking.com are thriving as it benefits from an increase in available listings for travelers. By the end of Q2 2024, Booking Holdings Inc. (NASDAQ:BKNG) had around 7.8 million global alternative accommodation listings, which is about 11% higher than the same time last year.
Booking Holdings Inc. (NASDAQ:BKNG) has significantly increased its flight offerings. As a result, air tickets booked on its platforms rose by 28% compared to the previous year. This growth is largely due to the growth of Booking.com’s flight offering and strong performance in Agoda’s flight business.
By leveraging technology, such as generative AI for trip planning, the company is committed to improving customer engagement and satisfaction while also capitalizing on the expanding travel industry.
The company reported strong financial performance for Q2 2024, with room nights booked increasing by 7% compared to the same quarter last year. Booking Holdings Inc. (NASDAQ:BKNG) achieved a net income of $1.5 billion, reflecting an 18% rise from the prior-year quarter. Gross travel bookings reached $41.4 billion, a 4% increase, while total revenues grew by 7% to $5.9 billion. Additionally, the earnings per diluted share rose by 27% to $44.38.
Booking Holdings Inc. (NASDAQ:BKNG) also saw a positive cash flow situation, ending the quarter with $16.8 billion in cash and investments, up from $16.4 billion in the previous quarter. This increase was driven by approximately $2.4 billion in free cash flow generated during the quarter, despite returning about $1.9 billion to shareholders through share repurchases and dividends. Overall, the company demonstrates solid growth and financial stability.
As of the second quarter of 2024, BKNG was held by 96 hedge funds, according to Insider Monkey’s database. It ranks among the most profitable stocks.
Wedgewood Partners stated the following regarding Booking Holdings Inc. (NASDAQ:BKNG) in its second-quarter 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.”
