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Here's How Much You'd Have If You Invested $1000 in Booking Holdings a Decade Ago
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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.
FOMO, or the fear of missing out, also plays a role in investing, particularly with 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, CT-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.
It has agreements with hotels, airline 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 make informed decisions.
Services in the United States are provided through the Booking Holdings.com website. The company employs two marketing strategies in the country, “price-disclosed” and “name your own price” or “opaque”.
International results are comprised of revenues from rentalcars.com, Agoda and Kayak. While rentalcars.com allows it to take rental car reservations, Kayak enables comparative shopping of Booking Holdings inventories. Agoda, on the other hand, caters primarily to consumers in the Asian-Pacific region, offering flight, ground transportation, and activity reservation services. The acquisition of OpenTable, which has allowed it to expand into the restaurant reservations space, also contributes to the international revenues.
Booking Holdings reported revenues of $17.09 billion in 2022. Agency revenues accounted for 52.7% of revenues. Merchant revenues contributed 42.1% of revenues. It also generated 5.2% of 2022 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, and customer processing fees, along with the ones included in the agency model.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Booking Holdings a decade ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in November 2013 would be worth $2,774.60, or a gain of 177.46%, as of November 14, 2023, according to our calculations. This return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 147.56% and the price of gold went up 45.26% over the same time frame.
Looking ahead, analysts are expecting more upside for BKNG.
Booking Holdings reported strong third-quarter results, with both earnings and revenues increasing year over year. Strength in the overall travel demand environment, particularly in global leisure travel demand was a major positive. This, in turn, lowered cancellation rates. Strong momentum across merchant and advertising and other businesses boosted its top-line growth. Strong growth in rental car and airline ticket units is another positive. Strength across room nights and gross bookings, owing to its favorable demand environment, bolstered its third-quarter results. Further, strengthening alternative accommodation business and flight capabilities were major positives. Shares have outperformed the industry year to date. However, weakness in agency bookings was a headwind. Further, intensifying competition is a concern.
The stock is up 5.15% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 9 higher, for fiscal 2023. The consensus estimate has moved up as well.
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Here's How Much You'd Have If You Invested $1000 in Booking Holdings a Decade Ago
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.
FOMO, or the fear of missing out, also plays a role in investing, particularly with 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, CT-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.
It has agreements with hotels, airline 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 make informed decisions.
Services in the United States are provided through the Booking Holdings.com website. The company employs two marketing strategies in the country, “price-disclosed” and “name your own price” or “opaque”.
International results are comprised of revenues from rentalcars.com, Agoda and Kayak. While rentalcars.com allows it to take rental car reservations, Kayak enables comparative shopping of Booking Holdings inventories. Agoda, on the other hand, caters primarily to consumers in the Asian-Pacific region, offering flight, ground transportation, and activity reservation services. The acquisition of OpenTable, which has allowed it to expand into the restaurant reservations space, also contributes to the international revenues.
Booking Holdings reported revenues of $17.09 billion in 2022. Agency revenues accounted for 52.7% of revenues. Merchant revenues contributed 42.1% of revenues. It also generated 5.2% of 2022 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, and customer processing fees, along with the ones included in the agency model.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Booking Holdings a decade ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in November 2013 would be worth $2,774.60, or a gain of 177.46%, as of November 14, 2023, according to our calculations. This return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 147.56% and the price of gold went up 45.26% over the same time frame.
Looking ahead, analysts are expecting more upside for BKNG.
Booking Holdings reported strong third-quarter results, with both earnings and revenues increasing year over year. Strength in the overall travel demand environment, particularly in global leisure travel demand was a major positive. This, in turn, lowered cancellation rates. Strong momentum across merchant and advertising and other businesses boosted its top-line growth. Strong growth in rental car and airline ticket units is another positive. Strength across room nights and gross bookings, owing to its favorable demand environment, bolstered its third-quarter results. Further, strengthening alternative accommodation business and flight capabilities were major positives. Shares have outperformed the industry year to date. However, weakness in agency bookings was a headwind. Further, intensifying competition is a concern.
The stock is up 5.15% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 9 higher, for fiscal 2023. The consensus estimate has moved up as well.