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If You Invested $1000 in Booking Holdings a Decade Ago, This is How Much It'd Be Worth Now
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For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially 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, 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 (42.1% of 2022 total revenues) and agency channels (52.7% of 2022 revenues). It also generates around 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, customer processing fees along with the ones included in agency model.
Advertising & Other revenues are generated from KAYAK and Open Table.
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.
According to our calculations, a $1000 investment made in April 2013 would be worth $3,578.28, or a gain of 257.83%, as of April 11, 2023, and this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 158.80% and the price of gold went up 22.55% over the same time frame.
Going forward, analysts are expecting more upside for BKNG.
Booking Holdings is benefiting from substantial improvement in its booking trends. Solid growth in domestic bookings is contributing well. Further, the company is experiencing solid momentum in international regions, which is a positive. Strong growth in rental car, airline ticket units and booked room nights is another positive. Also, solid momentum across the agency, merchant, and advertising and other businesses is a tailwind. Our estimates suggest agency, merchant, and advertising and other revenues to see a year-over-year rise of 2.3%, 18.7% and 8.2%, respectively in 2023. Further, strengthening alternative accommodation business and flight capabilities are major positives. Considering the aforesaid facts, we expect 2023 total revenues to be up 9.5% from 2022. However, uncertainties related to the ongoing coronavirus pandemic are concerns.
The stock is up 5.48% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 8 higher, for fiscal 2023. The consensus estimate has moved up as well.
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If You Invested $1000 in Booking Holdings a Decade Ago, This is How Much It'd Be Worth Now
For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially 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, 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 (42.1% of 2022 total revenues) and agency channels (52.7% of 2022 revenues). It also generates around 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, customer processing fees along with the ones included in agency model.
Advertising & Other revenues are generated from KAYAK and Open Table.
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.
According to our calculations, a $1000 investment made in April 2013 would be worth $3,578.28, or a gain of 257.83%, as of April 11, 2023, and this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 158.80% and the price of gold went up 22.55% over the same time frame.
Going forward, analysts are expecting more upside for BKNG.
Booking Holdings is benefiting from substantial improvement in its booking trends. Solid growth in domestic bookings is contributing well. Further, the company is experiencing solid momentum in international regions, which is a positive. Strong growth in rental car, airline ticket units and booked room nights is another positive. Also, solid momentum across the agency, merchant, and advertising and other businesses is a tailwind. Our estimates suggest agency, merchant, and advertising and other revenues to see a year-over-year rise of 2.3%, 18.7% and 8.2%, respectively in 2023. Further, strengthening alternative accommodation business and flight capabilities are major positives. Considering the aforesaid facts, we expect 2023 total revenues to be up 9.5% from 2022. However, uncertainties related to the ongoing coronavirus pandemic are concerns.
The stock is up 5.48% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 8 higher, for fiscal 2023. The consensus estimate has moved up as well.