Booking.com Takes Flight: Financials and Alternative Data Point to a High-Flying Stock

April 7, 7:54 am

Based on recent financial and alternative data, it appears that Booking.com ($BKNG), an online travel company, could represent a potentially attractive investment opportunity for those interested in the travel and tourism industry. The company has had exceptional performance lately, with its stock price up by 54.6% in the last six months. Moreover, Booking.com's most recent earnings report showed impressive financials, with $4.05 billion in revenue and earnings per share of $24.74 for the quarter, beating analyst estimates. Furthermore, the company has experienced positive trends in alternative data points such as web traffic, social media presence, and employee sentiment, which are all important indicators of a company's future growth potential. Let’s take a closer look.

Booking.com's most recent earnings report indicates strong financial performance, with revenue of $4.05 billion and earnings per share of $24.74 for the quarter. The company's net profit margin of 30.5% and return on equity of 107.86% also suggest that it is generating healthy returns on investment. Furthermore, the company's revenue growth of 35.8% compared to the same quarter last year is an impressive sign of growth. Impressive numbers.

Let's take a look at some alternative data points.

Firstly, web traffic to booking.com is trending upward, with a 10% year-over-year increase according to our data. This suggests that more people are using booking.com to book their travel accommodations, flights, and other travel-related services.

Secondly, the company's social media presence is impressive, with 15.7 million followers on Facebook and 500,000 new followers in the last 12 months alone. This is in comparison to Expedia, one of Booking.com's main competitors, which has fewer than 7 million followers on Facebook. Additionally, Booking.com has seen a 30% increase in its youtube subscribers and a 40% increase in its Tiktok following, in just the last 3 months.

The traveling industry has definitely seen an upswing over the last year and the business outlook among employees in the industry is up by 14%. Booking.com’s is sharing that sentiment, with a 50% increase in business outlook over the last year, vastly outperforming the industry. This is a good sign for the company's overall performance, as employees who are confident in the future of their company are often more productive and motivated. Comparatively, Trivago, another competitor, has seen a 30% decrease in business outlook among its employees over the same time period.

However, it's important to note that the number of people downloading Booking.com's mobile apps has seen a slight decline in recent months, down 8% since February. Nevertheless, the total number of downloads remains three times higher than that of Expedia.

Overall, based on the strong financials, positive web traffic trends, impressive social media following, and high employee sentiment, Booking.com appears to be an attractive investment opportunity in the travel industry. But with the stock already being up over 54% in the last six months, we're concerned that this might already be priced in. Add to that the macro economics are not rosy right now and that might have a negative impact on the travel industry.
We're putting the stock on hold for now, but will definitely be buyers if the price drops in the next couple of weeks.

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