This is a step-by-step stock review to answer the question, is Booking Holdings (BKNG) stock a good buy?
This article will teach you how to use the 4Ms of investing. This will be a detailed walkthrough to show you how the 4Ms work and why they are important. If you are interested, you can log into Tykr to use the 4M Confidence Booster (Powered by OpenAI) which will allow you to complete a 4M Analysis in less than 60 seconds.
What are the 4Ms?
- MOS (Margin of Safety) – The MOS is the math part of investing which includes the Summary, Score, and MOS (Margin of Safety).
- Meaning – The meaning is the business model and how scalable the revenue streams are.
- Moat – The moat is how the business compares to other companies in the same Sector and Industry.
- Management – The management is the track record of the CEO.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
Table of Contents
The following links will direct you to key topics to help answer the question, is Booking Holdings (BKNG) stock a good buy?
- Booking Holdings Company History
- MOS
- Meaning
- Moat
- Management
- 4M Score
- Is Booking Holdings (BKNG) stock a good buy?
1.Booking Holdings Company History
- Founded in 1997: Booking Holdings started as Booking.com, originally a small Dutch startup specializing in hotel bookings.
- Growth and Expansion: The company expanded rapidly, acquiring other travel-related companies and rebranding as Booking Holdings in 2018.
- Public Listing: Booking Holdings went public in 1999, trading on the NASDAQ under the ticker BKNG, and has since become a major player in the online travel industry.
- Acquisitions: Key acquisitions include Priceline (2004), Kayak (2013), and OpenTable (2014), broadening its range of services and global reach.
- Global Presence: With brands like Booking.com, Priceline, and Agoda, Booking Holdings operates in over 220 countries, offering a wide range of travel services including accommodations, flights, and car rentals.
- Innovation: The company is known for leveraging technology and data analytics to enhance user experience and streamline travel booking processes.
- Commitment to Service: Booking Holdings focuses on providing exceptional customer service and competitive pricing, maintaining its leadership in the online travel market.
2. MOS (Margin Of Safety)
When investing in a company, the first step is to look at the financials. Fortunately, Tykr does this for us automatically. The higher the score, the stronger the financials and the safer the investment. The higher the MOS, the higher the potential returns you can make.
- Summary: Watch
- Score: 50
- MOS: 1%
To see the most up-to-date Summary, Score, and MOS, please log into Tykr.
3. Meaning
When investing in a company, it’s important to know how a company makes money. A mature business model has multiple streams of revenue which allow the company to weather downturns in the economy.
Here is how Booking Holdings makes money:
- Booking Fees: Booking Holdings earns revenue by charging commissions on hotel reservations made through its platforms like Booking.com and Agoda.
- Travel Services: The company generates income from booking fees for flights, car rentals, and vacation packages through its various travel sites.
- Advertising Revenue: They make money from advertising services offered to hotels and travel providers who want to promote their listings on the Booking Holdings platforms.
- Subscription Services: Revenue is also derived from subscription-based services like Booking.com’s Genius program, which offers perks for frequent users.
- Property Listings: They earn fees from property owners and managers who list their properties on their booking platforms.
Here are a few of the other companies that Booking Holdings has acquired over the years. This is important because a company will use a “Buy before build” philosophy to go to market faster and add additional streams of revenue. A company with more revenue streams has a more stable business model. Keep in mind, that most companies don’t build new software because it takes too long to go to market and generate revenue.
- Priceline
- Kayak
- Agoda
- Rentalcars.com
- OpenTable
- Trip.com
4. Moat
When investing in a company, it’s important to understand how a company ranks against other companies in the same sector and industry. Based on the Score, here is how Booking Holdings stacks up against other companies.
- MakeMyTrip Limited.(MMYT) – 67
- Tripadvisor, Inc.(TRIP) – 67
- Airbnb, Inc.(ABNB) – 67
- Expedia Group, Inc.(EXPE) – 61
- Trip.com Group Limited.(TCOM) – 56
- Booking Holdings Inc.(BKNG) – 50
To see the most up-to-date Summary, Score, and MOS and each stock, please log into Tykr.
5. Management
When investing in a company, it’s important to understand who the CEO is, what they have accomplished in the past, and how they have helped this company grow. Good leaders typically have stronger cultures, less turnover, and better returns in the stock market.
- Revenue Growth: Glenn D. Fogel Achieved substantial increases in Booking Holdings’ revenue, driving financial success.
- Global Expansion: Expanded the company’s presence into new international markets, increasing global reach.
- Acquisitions: Led strategic acquisitions, including the purchase of Priceline, OpenTable, and other companies, to enhance the company’s portfolio.
- Technological Innovation: Invested in and advanced technology and data analytics to improve user experience and operational efficiency.
- Brand Development: Strengthened and diversified the company’s brand portfolio, including Booking.com, Priceline, and Kayak.
- Customer Experience: Improved customer service and satisfaction through enhancements in booking platforms and user interfaces.
- Operational Efficiency: Streamlined operations and processes to reduce costs and improve profitability.
6. 4M Score
All of our homework on this company leads up to the 4M Score. A lot of investors only look at the numbers. Yes, it’s important to look at the first M (MOS) which is the math part of investing but it’s also important to look past the numbers and also look at the Meaning, Moat, and Management. If all 4Ms pass, we should have high confidence in buying this stock.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
👉 The 4M Score of Booking Holdings (BKNG) is 77/100.
To see the most up-to-date 4M Score, please log into Tykr.
7. Is Booking Holdings (BKNG) stock a good buy?
Some of the top questions investors can have is Booking Holdings (BKNG) stock a good buy or should I buy Booking Holdings (BKNG) stock?
Booking Holdings is a strong investment option for several reasons. As a leader in the online travel and accommodations sector, the company benefits from a large and growing global market. Its extensive portfolio of brands, including Booking.com, Priceline, and Kayak, provides diverse revenue streams and a broad customer base. Booking Holdings’ innovative technology and data-driven strategies enhance its competitive edge and customer experience. The company has demonstrated robust financial performance and resilience, even during market fluctuations. Additionally, its strategic acquisitions and global expansion efforts support long-term growth. However, investors should consider potential risks such as market competition and economic downturns affecting travel. Overall, Booking Holdings’ dominant market position and strong growth prospects make it a compelling choice for those seeking investment in the travel and tech industries.
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To truly know if Booking Holdings is a good stock to buy or sell, we recommend you log into Tykr. Within seconds you can see the Summary, Score, MOS, and 4M Score.
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