Is This a Value Stock?

When the Covid-19 and economic crises hit, it was like the proverbial load of bricks landing on the travel industry. The share price of Booking Holdings Inc. (NASDAQ:BKNG), a broker of hotel, flight and other travel services, dropped dramatically; the pessimism of shareholders was confirmed when its first-quarter 2020 financial results were released:

  • The value of first-quarter gross travel bookings fell 51% from a year earlier.
  • A net loss of $699 million as compared with net income of $765 million the year before.
  • On an earnings per share basis (diluted), it was minus $17.01 per share, compared to positive $16.85 per share in the same quarter of 2019.

Despite all that bad news, there is reason for optimism in the longer term.

About Booking

The company uses these words to describe itself: “We connect consumers wishing to make travel reservations with providers of travel services around the world through our

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