Translation: Booking: AI Expansion and Stock Repurchases Drive Stock Price

Last Updated: 22. Dezember 2023By, the leading online travel agency, continues to draw the attention of the stock market. The share price increase after the investor conference on December 6th shows the growing interest of investors in the company. But what makes the Booking stock so attractive?

Why the Booking stock is in the wind With a market share of 25% in hotel bookings and an impressive market presence, Booking is a major player in the industry. The strategy of using AI technologies such as KAYAK and OpenTable to personalize the customer experience makes the stock particularly attractive to many investors. These tools allow users to plan and book their trips directly through intelligent assistants.

Expansion of the offer and increase in profitability A key factor for Booking’s growth is the expansion of its offer. The company’s goal is to offer a complete travel system ranging from flight bookings to car rentals and restaurant reservations. The introduction of a platform for cruises and the expansion of the offer of alternative accommodations are promising steps to compete with competitors such as Airbnb and strengthen customer loyalty.

In addition, Booking’s profitability is remarkable with an average EBITDA margin of 37.34% in the last ten years. This is significantly higher than the industry average of 20%. The continuous exceeding of market expectations, especially with the recovery in Asia, contributes to the positive growth. Since 2019, the number of sold flight tickets in the third quarter has increased five-fold.

Six month chart of Booking Holdings Inc. Booking reaches historical level: share price at new record highs! (Source: Stock Screener)

Long-term strategy and stock buyback reaffirms its long-term growth course through planned extensive stock buybacks. The company plans to buy back shares worth 24 billion USD in the next four years to maximize the capital return for its shareholders. By reducing the outstanding shares, the value of each share should be increased. CFO Goulden also hinted that the pace of stock buybacks could be further increased by taking on additional debt.

Conclusion The Booking stock remains an attractive investment due to its impressive market presence, continuous investments in AI technologies and strategy to expand its travel offer. Despite a share price increase of over 50% in 2023, the valuation does not seem overly high with an expected P/E ratio of 23 and P/B ratio of 5.3 in 2023.

Investors looking for a long-term investment with growth potential could find the Booking stock a promising option. Stay tuned for more insights and up-to-date market analyses!