Should You Hold Booking Holdings (BKNG)?

Wedgewood Partners, an investment management company, released its third-quarter 2025 investor letter. The letter is available for download here.  AI stocks remain the favorite topic of Wall Street in the third quarter. In the third quarter, Wedgewood Composite’s net return was 5.9% compared to the Standard & Poor’s 8.1%, the Russell 1000 Growth Index’s 10.5%, and the Russell 1000 Value Index’s 5.3% return for the same period. In addition, you can check the fund’s best 5 holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Wedgewood Partners highlighted stocks such as Booking Holdings Inc. (NASDAQ:BKNG). Headquartered in Norwalk, Connecticut, Booking Holdings Inc. (NASDAQ:BKNG) provides online travel and restaurant booking services.  The one-month return of Booking Holdings Inc. (NASDAQ:BKNG) was -5.34%, and its shares gained 21.27% of their value over the last 52 weeks. On October 22, 2025, Booking Holdings Inc. (NASDAQ:BKNG) stock closed at $5,230.59 per share, with a market capitalization of $169.523 billion.

Wedgewood Partners stated the following regarding Booking Holdings Inc. (NASDAQ:BKNG) in its third quarter 2025 investor letter:

“Booking Holdings Inc. (NASDAQ:BKNG) also detracted from performance during the quarter. Revenues grew +16% and earnings per share were up +32% on strong room night growth in its ex-U.S. markets. The Company derives over +60% of its bookings from travelers who go directly to the booking.com app or website. This has freed up advertising cash low to reinvest in distribution across search engines, social media, and now agentic commerce through OpenAI’s “Operator.” Booking’s focus on fragmented hotel suppliers in ex-U.S. markets is quite differentiated, so much so that it has allowed it to amass scale in areas that competitors simply have trouble reaching. The Company’s obsessive focus on generating attractive returns from advertising has also been a key driver of its success, and that should continue to be beneficial to shareholders, regardless of the marketing channel consumers choose.”

Jim Cramer on Booking Holdings (BKNG): “Think Twice Before You Write Off the Travel Bull Market”

Booking Holdings Inc. (NASDAQ:BKNG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 92 hedge fund portfolios held Booking Holdings Inc. (NASDAQ:BKNG) at the end of the second quarter, compared to 102 in the previous quarter.  While we acknowledge the risk and potential of Booking Holdings Inc. (NASDAQ:BKNG) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Booking Holdings Inc. (NASDAQ:BKNG) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Booking Holdings Inc. (NASDAQ:BKNG) and shared the list of stocks to buy according to billionaire Ray Dalio’s Bridgewater Associates. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

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