Booking Holdings Inc

The Fund's notable portfolio activity included a substantial top-up to Booking Holdings, reflecting confidence in its growth potential. The manager emphasizes the importance of technology and AI exposure, suggesting that Booking Holdings is well-positioned to benefit from these trends. The decision to add to this position indicates a belief in its strong fundamentals and future performance, aligning with the overall strategy of focusing on attractive valuations and growth opportunities.

Booking Holdings, a leading online travel platform, was added during the quarter. Middle East conflict headlines and an AI-related selloff dragged the stock down; this overreaction created an opportunistic entry point into a business we believe to be well positioned for long-term global travel growth.

Booking Holdings is listed as a top position in the Platinum Global Fund, but no specific argument or directional stance is provided regarding its future performance or valuation.

Booking Holdings is listed as a top position in the Platinum Global Fund, but no specific argument or directional stance is provided regarding its future performance or valuation.

Booking Holdings is the leading online travel agency, with room nights and bookings running 2-3x those of its nearest peers, Expedia and Airbnb. The stock has fallen out of favour on concerns that AI agents will divert consumers away from Booking's profitable direct-traffic model. We think the market underappreciates the continued underlying drivers of its no. 1 position, including its deep supply-side relationships with small hotels, paid ad flywheel, loyalty program and metadata. The business is also run by a tenured management team that has navigated it through multiple industry crises. Lingering travel fears tied to the Iran conflict, together with the stock's underperformance versus hotel operators, offer additional margin of safety in a long-term GDP+ travel sector.

Booking Holdings is the leading online travel agency, with room nights and bookings running 2-3x those of its nearest peers, Expedia and Airbnb. The stock has fallen out of favour on concerns that AI agents will divert consumers away from Booking's profitable direct-traffic model. We think the market underappreciates the continued underlying drivers of its no. 1 position, including its deep supply-side relationships with small hotels, paid ad flywheel, loyalty program and metadata. The business is also run by a tenured management team that has navigated it through multiple industry crises.

Booking Holdings is a global online travel booking platform that connects customers with providers of accommodations, airline tickets, car rentals, and other travel services. The company benefits from significant network effects, as the more accommodation options available on its platform, the more customers it attracts. It has long been among the most profitable firms in the travel industry, generating very high free cash flow. The combination of its dominant market position, low capital requirements, and high return on capital makes it an attractive investment opportunity.

In the context of recent market volatility, we believe that the deployment of artificial intelligence should not affect the essence of Booking Holdings' business or its future dynamics. We have taken advantage of the recent sell-off to invest once again in Booking Holdings, a company we exited in mid-2019. Since our divestment, Booking Holdings has accumulated a return of 133% in euros, compared to the 160% posted by Horos Value Internacional. This indicates a strong performance and reinforces our belief in its resilience amidst market uncertainties.

Booking Holdings has shown a positive trajectory with a 9.2% increase in share price, driven by the introduction of efficiency-increasing AI functions that have bolstered investor confidence in the company's long-term profitability. Additionally, solid pre-bookings for the first quarter further support the optimistic outlook for the company. This combination of AI-driven enhancements and strong demand positions Booking Holdings favorably for future growth.

Booking Holdings has shown strong performance with revenues growing +16% and earnings per share up +32%, driven by robust room night growth in its ex-U.S. markets. The company benefits from over +60% of its bookings coming directly from its booking.com app or website, allowing it to reinvest advertising cash flow into distribution across various channels. Its focus on fragmented hotel suppliers in ex-U.S. markets has created a differentiated position, enabling it to scale in areas where competitors struggle. This strategic approach, combined with an obsessive focus on generating attractive returns from advertising, positions Booking Holdings favorably for continued shareholder benefits.