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If You Invested $1000 in Booking Holdings 10 Years Ago, This Is How Much You'd Have Now
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How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Booking Holdings (BKNG - Free Report) 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, Connecticut-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.
The company has agreements with hotels, airlines 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 take informed decisions.
Services in the U.S. are provided through the Booking Holdings.com website. The company employs two marketing strategies in the U.S.—“price-disclosed” and “name your own price” or “opaque”.
International revenues are generated through Booking.com and Agoda. Booking.com is older and therefore, has more patrons. Agoda is an Asian company acquired in 2007. Booking Holdings’s investment in Chinese travel company Ctrip facilitates the use of each other’s inventories in China and the U.S.
International results are comprised of revenues from rentalcars.com and Kayak. While rentalcars.com allows it to take rental car reservations, Kayak enables comparative shopping of Booking Holdings inventories. The acquisition of OpenTable that has allowed it to expand into restaurant reservations space, also contributes to the international revenues.
Booking Holdings distributes its services through merchant (31.2% of 2020 total revenues) and agency channels (63.5% of 2020 revenues). It also generates around 5.3% of 2020 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, customer processing fees along with the ones included in agency model.
Advertising & Other revenues are generated from KAYAK and Open Table.
Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Booking Holdings ten years ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in February 2012 would be worth $4,863.61, or a gain of 386.36%, as of February 10, 2022, and this return excludes dividends but includes price increases.
The S&P 500 rose 239.30% and the price of gold increased 1.90% over the same time frame in comparison.
Looking ahead, analysts are expecting more upside for BKNG.
Booking Holdings is benefiting from substantial improvement in its booking trends owing to removal of travel restrictions. Further, the company is experiencing solid momentum in Europe which is a positive. Strong growth in rental car, airline ticket units and booked room nights is another positive. Additionally, solid momentum across the agency, merchant, and advertising and other businesses is contributing well. The ongoing vaccination drive and lifting up of travel restrictions in many parts of the world remain major tailwinds. Further, strengthening alternative accommodation business and flight capabilities are positives. Notably, the stock has outperformed its industry over a year. However, uncertainties related to Omicron variant of coronavirus remain concerns. Further, intensifying online travel competition remains a major negative.
Over the past four weeks, shares have rallied 7.84%, and there have been 2 higher earnings estimate revisions in the past two months for fiscal 2021 compared to none lower. The consensus estimate has moved up as well.
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If You Invested $1000 in Booking Holdings 10 Years Ago, This Is How Much You'd Have Now
How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Booking Holdings (BKNG - Free Report) 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, Connecticut-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.
The company has agreements with hotels, airlines 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 take informed decisions.
Services in the U.S. are provided through the Booking Holdings.com website. The company employs two marketing strategies in the U.S.—“price-disclosed” and “name your own price” or “opaque”.
International revenues are generated through Booking.com and Agoda. Booking.com is older and therefore, has more patrons. Agoda is an Asian company acquired in 2007. Booking Holdings’s investment in Chinese travel company Ctrip facilitates the use of each other’s inventories in China and the U.S.
International results are comprised of revenues from rentalcars.com and Kayak. While rentalcars.com allows it to take rental car reservations, Kayak enables comparative shopping of Booking Holdings inventories. The acquisition of OpenTable that has allowed it to expand into restaurant reservations space, also contributes to the international revenues.
Booking Holdings distributes its services through merchant (31.2% of 2020 total revenues) and agency channels (63.5% of 2020 revenues). It also generates around 5.3% of 2020 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, customer processing fees along with the ones included in agency model.
Advertising & Other revenues are generated from KAYAK and Open Table.
Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Booking Holdings ten years ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in February 2012 would be worth $4,863.61, or a gain of 386.36%, as of February 10, 2022, and this return excludes dividends but includes price increases.
The S&P 500 rose 239.30% and the price of gold increased 1.90% over the same time frame in comparison.
Looking ahead, analysts are expecting more upside for BKNG.
Booking Holdings is benefiting from substantial improvement in its booking trends owing to removal of travel restrictions. Further, the company is experiencing solid momentum in Europe which is a positive. Strong growth in rental car, airline ticket units and booked room nights is another positive. Additionally, solid momentum across the agency, merchant, and advertising and other businesses is contributing well. The ongoing vaccination drive and lifting up of travel restrictions in many parts of the world remain major tailwinds. Further, strengthening alternative accommodation business and flight capabilities are positives. Notably, the stock has outperformed its industry over a year. However, uncertainties related to Omicron variant of coronavirus remain concerns. Further, intensifying online travel competition remains a major negative.
Over the past four weeks, shares have rallied 7.84%, and there have been 2 higher earnings estimate revisions in the past two months for fiscal 2021 compared to none lower. The consensus estimate has moved up as well.