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Booking: Recovery Time

Aleksey Razdolgin profile picture
Aleksey Razdolgin


  • From April to June, Booking’s revenues were only $630 million, down 83.4% Y/Y.
  • The good news is that the company has a solid balance sheet and it’ll be able to survive and thrive in a post-pandemic world.
  • I’m long Booking.

After the publication of my bullish article on Booking (NASDAQ:BKNG) in late June, the company’s shares appreciated by more than 10% and there’s every reason to believe that they’ll increase in value in the next few months. While it will take years for the travel industry to return to its pre-COVID-19 levels, Booking has more than $10 billion in cash, which will help it to survive the pandemics. Already in Q2, the company reported positive GAAP EPS for Q2 thanks to a more than $800 million return from its equity investments. With an established foothold in the OTA field, Booking will be able to thrive and gain more market share in a post-pandemic world, since not every travel-related company will survive the current crisis. For that reason, I continue to hold a long position in Booking and believe that the company is one of the best travel stocks to own on the market right now.

Prepare For a Slow But Steady Recovery

Booking's stock is now more than 10% up since the publication of my latest article and it has every reason to continue to appreciate in the near-term. As a dominant OTA with a diversified portfolio of businesses, Booking is able to generate revenues by taking fees and commissions from each booking and reservation that is made on its platforms. Thanks to the growth of its platforms like Booking.com, Kayak, Priceline, Agoda, and others, Booking was able to achieve more than 20% ROIC in recent years until the pandemic started. While it will be a tough recovery for Booking and it will take time, the company has emerged stronger from the previous black swan events like 9/11, SARS outbreak, ZIKA epidemic, H1N1 pandemic, and others, and this time shouldn’t be any different.

It’s not a surprise that Booking had

This article was written by

Aleksey Razdolgin profile picture
Aleksey is CEO of the proprietary trading company Arbitrage Trades. Aleksey is in charge of creating new opportunities in this rapidly growing investments field. He is personally investing his own money into stocks, cryptocurrencies and other emerging trends of the financial industry.

Analyst’s Disclosure: I am/we are long BKNG, TRIP. 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.

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