Expensive, but worth it? – Booking Holdings shares hit new highs

One of the world’s best-known online travel service providers, the American Booking Holdings, is producing increasingly impressive results – not only in terms of user experience, but also in terms of financial indicators. The company is growing rapidly, paying dividends, and developing its future-proof platform with artificial intelligence – it’s no wonder that investors have also turned their attention to it.

The power of network effect

The Booking Holdings portfolio includes several well-known websites: not only the eponymous Booking.com, but also Priceline, Kayak, Rentalcars and other services. Together, these provide a strong network effect: the more users there are on the platform, the more service providers join them – and the opposite is also true.

This ecosystem is also generating more and more revenue: in the first quarter of 2025, the company’s sales increased by 8% to $4.8 billion, while earnings per share rose by 22% to $24.81. Free cash flow jumped even more sharply, by 23% to $3.2 billion. The growth rate was also convincing to analysts at JP Morgan, who raised their price target for the stock.

Not cheap, but there is a solution

Booking Holdings shares currently cost about $5,290 per share, making them one of the most expensive stocks on the US stock market. However, many online brokerages – mainly in the United States – now allow you to buy fractional shares, so you can get a position in the company for a smaller amount.

The investment appeal is increased by the fact that the company began paying a dividend in 2024, which it has been increasing ever since: the original quarterly payment of $8.75 per share has now increased to $9.60.

AI and the future of travel

Booking is not left out of the technological revolution: it has introduced an artificial intelligence-based trip planning tool and is working on several developments to offer its users an even more personalized and efficient travel experience.