Booking Holdings (BKNG) Surges on Strong Q4 EarningsShares of Booking Holdings (NASDAQ: NASDAQ:BKNG ) rallied in Friday’s premarket trading after the travel giant delivered a strong fourth-quarter earnings report, surpassing analyst expectations across key financial metrics. The company also announced a 10% dividend increase and an aggressive $20 billion stock buyback program, signaling confidence in its future growth.
With a bullish technical breakout and continued strength in the travel industry, investors are taking notice. Let’s dive into what’s driving BKNG’s latest surge.
Booking Smashes Expectations
Booking Holdings reported $5.47 billion in Q4 revenue, beating analyst estimates of $5.19 billion. This represents solid year-over-year growth, driven by strong travel demand and increased gross bookings.
Adjusted earnings per share (EPS) came in at $41.55, significantly above the $36.70 expected by analysts. Additionally, the company recorded $37.2 billion in gross bookings, outperforming the consensus estimate of $34.5 billion.
Dividend Hike and Massive Buyback Plan
To reward shareholders, Booking announced:
✅ A 10% increase in its quarterly dividend, raising it to $9.60 per share, up from $8.75 last year.
✅ A $20 billion stock buyback program, adding to the $7.7 billion already remaining from its previous repurchase plan.
This aggressive capital return strategy demonstrates confidence in the company’s financial health and reinforces investor interest in BKNG stock.
Strong Forward Guidance
Booking expects continued growth in 2025, forecasting:
• 2%-4% revenue growth in Q1
• 5%-7% increase in gross bookings
• Mid-single-digit revenue growth for the full year
• Low double-digit EPS growth
This optimistic outlook aligns with sustained travel demand, particularly as consumers continue prioritizing experiences over discretionary goods.
Wall Street Bullish on BKNG
Following the earnings beat, major analysts raised their price targets for BKNG:
• Jefferies: Increased target to $5,400
• JPMorgan: Raised target to $5,750
Both firms cited strong travel demand and the company’s planned increase in social media advertising spend on Meta Platforms (META), such as Facebook and Instagram, as key growth drivers.
Technical Analysis
BKNG’s price action shows a clear bullish breakout from a falling wedge pattern, a historically reliable reversal signal that often precedes a significant uptrend.
• Current Price Action: As of Friday’s premarket session, BKNG was up 3.54%, confirming strong buying momentum.
• RSI at 57: With the Relative Strength Index (RSI) at 57, BKNG has more room to run before hitting overbought levels.
• Trading Above Key Moving Averages: The stock is trading above key moving averages, reinforcing its bullish trend and potential for further upside.
35% Growth in the Past Year
BKNG has already gained roughly 35% over the last 12 months, reflecting investor confidence and strong sector performance in the post-pandemic travel boom.
Final Thoughts: Is BKNG a Buy?
With strong earnings, robust forward guidance, and bullish technical signals, BKNG appears well-positioned for continued upside.
