Booking Holdings: The Buy Thesis Survives Q2

Kenio Fontes 3.02K Followers Follow Summary Booking Holdings Q2 results were mixed, with revenue up 8% and EPS up 15% YoY, but growth decelerating versus recent quarters. I remain on a cautious buy rating for BKNG, citing strong shareholder returns, a wide moat, and discounted valuation, despite short-term macro and competitive headwinds. Marketing expenses grew 11%, outpacing revenue, raising concerns about customer acquisition costs and competitive pressures, particularly from Google. BKNG trades at 18.4x forward P/E, well below its 5-year average, offering potential upside if industry dynamics or competitive threats stabilize. KairosDee/iStock Editorial via Getty Images In my last article , I said something about Booking as a high-quality compounder; Booking is a wide-moat company in a growing industry; it’s also a very shareholder-friendly company, so shareholder yield is boosted by high buybacks. This article was written by Kenio Fontes 3.02K Followers Follow Equity Research Analyst with a broad career in the financial market, covered both Brazilian and global stocks. As a value investor, my analysis is primarily fundamental, focusing on identifying undervalued stocks with growth potential. Feel free to reach out for collaborations or to connect! Analyst’s Disclosure: I/we have a beneficial long position in the shares of GOOGL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.