FLL

Booking Holdings Is a Net-Cash-Rich, Free-Cash-Flow Generating Powerhouse!

by

Image: Booking Holdings remains an asset-light, free-cash-flow generating powerhouse. By Brian Nelson, CFA On November 2, Best Ideas Newsletter portfolio holding Booking Holdings (BKNG) reported excellent third-quarter results with revenue advancing 21.3% and non-GAAP earnings per share coming in ahead of the consensus forecast. People around the world continue to book travel and accommodations as pent-up demand from the COVID-19 pandemic continues to showcase itself in Booking Holdings’ results. Gross travel bookings advanced 24% (21% on a constant-currency basis) in the quarter on a year-over-year basis, and the firm converted this strong demand into a 51% increase in net income. We like the asset-light, free-cash-flow generating nature of Booking Holdings, and we continue to believe it belongs in the Best … Read more

Best Idea Booking Holdings Soars!

by

Image: Booking Holdings’ free cash flow conversion is about as good as it gets. The company remains a key idea in the Best Ideas Newsletter portfolio. Image Source: Booking Holdings By Brian Nelson, CFA We initiated a position in Booking Holdings (BKNG) in the Best Ideas Newsletter portfolio in June due in part to its extremely attractive valuation at that time, of which we highlighted graphically in this April 19 note. Booking Holdings’ price-to-fair value disconnect was rather large back in April following a huge fair value estimate increase around that time. Shares of the company have now surged past our fair value estimate of $3,164, as indicated in post-market trading following its fantastic second-quarter 2023 results, and we’re sticking … Read more

New Issue Airbnb’s Shares Pricing In Strong Recovery and Then Some

by

Image Shown: Airbnb is losing money hand over fist while as it grows into its substantial market opportunity. Source: S-1. By Brian Nelson, CFA Rental platform Airbnb (ABNB) has been a part of the latest series of IPOs that have soared out of the gates recently. Shares went public at $68 per share December 10, and now the equity is trading at more than $148 per share at the time of this writing. For those that don’t know the story of Airbnb (AirBed & Breakfast), the concept started in 2007 when, after discovering that every hotel was sold out during an international design conference in San Francisco, the founders started renting airbeds in their apartment to conference attendees. Thirteen years have now … Read more

Sports Betting Legalized; Churchill Downs Has Leg Up on Rivals

by

In a landmark decision, the US Supreme Court ruled that states could legalize sports betting. We expect this to be a positive catalyst for several gambling-related equities, and many are moving fast to capitalize on the development. We’re taking a long-term view on potential ramifications and are not jumping head-first into any potential opportunities…yet. By Brian Nelson, CFA On May 14, 2018, in a 6-to-3 ruling, the Supreme Court of the United States ruled in Murphy v. National Collegiate Athletic Association that states could legalize sports gambling. The decision overturns the Professional and Amateur Sports Protection Act, a previous 1992 decision. The implications on a state by state basis have yet to play out, but we’d expect many states, including … Read more

Gaming: From Las Vegas to Macau and Beyond!

by

The Valuentum analyst team talks the casino and online gaming industries from the Las Vegas strip to the vast market in Macau. Online poker, sports betting, potential tax breaks, and Churchill Downs’ Kentucky Derby are topics of interest. Remember: In this industry, “the house always wins.” ~14 mins. If you cannot view the video below, please select the link here or view the transcript that follows. Brian Nelson, CFA: The gaming industry is a profitable one, but the gaming industry is also particularly sensitive to discretionary consumer and corporate spending and can be impacted by both the ups and downs of the economy. One particular aspect of explaining this dynamic is looking at Nevada’s gaming industry itself, which while gaming … Read more