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JP Morgan Reduces Target Price on Booking Holdings (BKNG) to $5,600

Booking Holdings Inc. (NASDAQ:BKNG) is one of the 14 Best Consumer Discretionary Stocks to Buy Right Now.

On February 20, JPMorgan reduced its target price on Booking Holdings by 10.4% to $5,600 (from $6,250), while maintaining its Overweight rating. This price update comes after Booking Holdings released its Q4 results, which the firm described as “strong” and its outlook as “encouraging”. It also thinks that management’s guidance could have some upside, given the company’s multi-year track record and additional savings from its “Transformation Program”.

This research update comes a couple of days after Booking Holdings released its Q4 earnings report on February 18, which showed rapid earnings growth across both GAAP and non-GAAP measures. GAAP net income and GAAP earnings per share grew 34% YoY (to $1.4 billion) and 38% YoY (to $44.22 per share), respectively. On non-GAAP metrics, adjusted EBITDA and adjusted earnings per share grew 19% YoY (to $2.2 billion) and 17% YoY (to $48.80 per share), respectively.

The rapid earnings growth was driven by both revenue growth and profit margin expansion. Revenue grew 16% YoY to $6.3 billion, as more room nights were booked (9% YoY growth to 285 million) at higher average daily rates (6% YoY growth to $151 per night). Net income margins, meanwhile, improved 300 basis points YoY to 22.5%, as the company’s “Transformation Program” enabled ~$550 million in annualized run-rate savings.

Booking Holdings Inc. (NASDAQ:BKNG) provides online travel and related solutions through its brands: Booking.com, Priceline, Agoda, KAYAK, and OpenTable. The company is based in Norwalk, Connecticut, and was founded in July 1997 by Jay Scott Walker.

While we acknowledge the potential of BKNG to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than BKNG and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

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