(BKNG) : Free Stock Analysis ReportĪirbnb, Inc. (EXPE) : Free Stock Analysis Reportīooking Holdings Inc. Click to get this free reportĮxpedia Group, Inc.
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This week, you can download, The Metaverse - What is it? And How to Profit with These 5 Pioneering Stocks. And in a new FREE report, Zacks is revealing those stocks to you. What do they know that you don't? They’re aware of the companies best poised to grow as the metaverse does. The inevitable result? Many investors will get rich as the metaverse evolves. Facebook even rebranded itself as Meta because Mark Zuckerberg believes the metaverse is the next iteration of the internet. The metaverse is gaining steam every day. Just Released: Free Report Reveals Little-Known Strategies to Help Profit from the $30 Trillion Metaverse Boom Furthermore, since the company offers such a wide variety of services through its ecosystem, customers often end up using the website for a multitude of services, rather than just one. BKNG’s strong brand name gives the company a clear advantage over its small competitors. The online travel giant differentiates itself through its diverse businesses, international foothold, and rare liquidity and earnings growth mix. Investors should expect BKNG to outperform over the next 6-12 months. Over the past six months, shares of competitors such as Airbnb ( ABNB ) and Expedia ( EXPE ) are flat, while BKNG gained 54.6%. From a price and volume perspective, BKNG’s performance is encouraging. The first factor that stands out is BKNG’s relative strength. The $97 billion company grew top-line growth at healthy 56% and 41% over the past two quarters. Being both liquid and high growth is hard to achieve, but BKNG is one company that has pulled it off. At the same time, institutions do not want stagnant growth. Otherwise, the fund will move the market too much and has a difficult time exiting the stock should that be necessary. The reason being is that for a large pension fund or mutual fund to take on a meaningful position, liquidity is a requirement that is non-negotiable. Large investors are often attracted to mega-cap, liquid stocks with high earnings growth. As a company grows into the multi-billions, scaling growth is much more difficult. Growing as a small company and growing as a large company are two completely different ball games. Liquidity + Earnings Growth: The Magic Elixir While there are no plans to conduct a split at the moment, a future split would be a potential catalyst for the stock. If management decided to implement a stock split, BKNG would attract a wider range of investors. While many institutions don’t mind paying high stock prices, retail investors do. Stock split potential: Management can unlock an immense amount of shareholder value through a stock split. Institutional investors tend to be attracted to higher priced stocks because they perceive them to be more stable and less risky, higher quality companies, and tend to be issued by companies with long track records of success. You get what you pay for: Like with most things in life you get what you pay for. The company’s valuation is also attractive when compared to competitors such as Airbnb ( ABNB ), which has a forward P/E of 32. Reasonable valuation: BKNG’s forward P/E ratio of 19 is basically inline with the S&P 500 Index’s forward P/E of 18. Though BKNG currently trades at around $2500 a share, investors should override any feelings of “sticker shock” they may have for three reasons: That said, BKNG management has made moves to increase domestic revenue by acquiring OpenTable and other U.S.-focused businesses. Furthermore, the European online travel market which BKNG also serves is currently growing faster than the domestic one. has already adopted online booking, the international market is still in the process of doing so. Because much of BKNG’s business is derived internationally, the secular tailwind should last for years. What’s driving the growth? BKNG is enjoying earning’s growth spurred on by secular growth factors such as the transition from standard booking procedures of the past to online booking.
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