Booking Holdings Q2 Earnings Beat on 16% Revenue Growth Asia and Europe Drive Momentum as Stock Ranks 76th in 16B Trading Volume

On July 31, 2025, Booking Holdings (BKNG) closed at $5,504.06, down 1.94% with a trading volume of 1.60 billion, ranking 76th in market activity. The stock reported Q2 2025 earnings of $55.40 per share, surpassing estimates of $50.22, driven by 16% year-over-year revenue growth to $6.8 billion. Strong international demand, particularly in Asia and Europe, offset weaker U.S. performance, while AI-driven initiatives and expanded alternative accommodations (8.4 million listings) fueled 10% growth in non-core hotel bookings.

Key strategic highlights included a 32% EBITDA increase and 30% year-over-year growth in Connected Trip transactions, reflecting diversification into flights, attractions, and AI-powered tools like Priceline’s Penny. Asia’s low double-digit room-night growth underscored long-term optimism, though U.S. demand showed mixed signals, including lower ADRs and shorter booking windows. The company emphasized disciplined cost management and $350 million in annual savings from transformation efforts, while reaffirming confidence in travel’s resilience amid macroeconomic uncertainties.

Looking ahead, Booking Holdings projected Q3 room-night growth of 3.5–5.5% and revenue growth of 7–9%, with adjusted EBITDA expected to rise 9% year-over-year. The stock’s YTD return of 11.20% outperformed the S&P 500’s 7.78%, though shares dipped post-earnings on cautious third-quarter guidance. Analysts noted continued momentum in direct bookings (mid-60% of B2C traffic) and GenAI adoption, which enhanced customer service and personalization across platforms.

The strategy of purchasing the top 500 stocks by daily trading volume and holding them for one day delivered a 166.71% return from 2022 to July 30, 2025, significantly outperforming the benchmark return of 29.18%. This indicates a strong momentum-driven approach, generating an excess return of 137.53% over the reference index. The rationale includes liquidity-driven momentum, volume-based returns, and effective risk management relative to the benchmark.