After the stock price surged by 16831% to four digits, Booking (BKNG.US) announced a dazzling financial report and a 1:25 stock split.

One of the most highly valued stocks in the US stock market is about to see a significant price drop. Booking Holdings (BKNG.US) closed at $4,269.99 per share on Wednesday. The company announced that its board has approved a 1:25 stock split, where investors will receive 25 new shares for every 1 share they hold - a common measure taken by high-growth companies to ensure their stocks are not too expensive for investors. In 2003, the company took the opposite approach. At that time, it was known as Priceline.com and was struggling due to the burst of the dot-com bubble. To boost its stock price, the company approved a 1:6 reverse stock split. However, since then, the growth of its online travel business has driven a significant increase in its stock price, resulting in a about 16,831% increase. This has pushed Booking's stock price into four digits, a rarity on Wall Street. The stock split will bring Booking's stock price down to about $165 per share and will take effect on April 2. This news coincides with the company's latest quarterly performance announcement, which showed a 16% year-on-year increase in booking volumes to $43 billion, exceeding analyst expectations. Total revenue increased by 15.5% to $6.35 billion when adjusted for constant exchange rates. Room nights grew by 9% year-on-year, car rental days grew by 4%, and airline ticket sales increased by 28%. Merchant bookings increased by 27.2%, while agency bookings declined by 5.7%. Adjusted EBITDA increased by 19% year-on-year to $2.2 billion. Earnings per share were $44.22, higher than the market expectation of $42.07 and the $31.95 from the same period last year. Free cash flow more than doubled to $1.4 billion. At the same time, Booking's first-quarter total booking volume guidance exceeded expectations, indicating continued strong performance in the travel industry. The parent company of Priceline stated in a statement that it expects total booking volume to grow by 15% (midpoint), higher than the analysts' previous forecast of 13% growth. This metric reflects the total value of travel services booked by customers (net of cancellations), a key driver of the company's revenue. Its revenue guidance also exceeded expectations (midpoint). The company based in Norwalk, Connecticut announced a significant increase in reinvestment funded by its savings plan. The company plans to increase its investment by about $700 million above usual levels in 2026, higher than the $170 million reinvestment amount in 2025. The CFO stated during the earnings call that these investments will be used to expand artificial intelligence, geographic expansion, and advertising business. The company expects these initiatives to bring in approximately $400 million in additional revenue this year. Booking also noted that average daily room rates slightly decreased in the fourth quarter (a key indicator of price and nightly spend per guest), and check-in lengths shortened compared to the same period last year. Steenbergen stated that these trends "may indicate that some consumer groups are still cautious with their discretionary spending". Previously, competitor Expedia Group (EXPE.US) announced the fastest quarterly revenue growth in three years, benefiting from strong US travel demand and stronger booking volumes. Airbnb, Inc. Class A (ABNB.US) also reported fourth-quarter booking volumes exceeding expectations and expects at least double-digit low-end revenue growth this year. Both companies indicated that consumers still prioritize travel, further strengthening the robust demand environment for online platforms.