The Bull Case for Booking Holdings (BKNG) Could Change Following EU Digital Services Act Scrutiny

• In recent days, the European Union announced it will scrutinize Booking Holdings, alongside several major tech firms, to determine whether they are adequately combating online financial fraud under the Digital Services Act. This regulatory examination could potentially lead to a formal investigation and sizable fines, highlighting the importance of digital platform security and compliance for Booking Holdings.
• This heightened focus on compliance underscores broader risks for global online travel platforms as regulators intensify efforts to address online safety and financial fraud.
• We'll explore how EU regulatory scrutiny under the Digital Services Act could influence Booking Holdings' investment narrative and risk outlook.

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Booking Holdings Investment Narrative Recap

Booking Holdings shareholders are generally betting on the company’s ongoing investments in technology, customer loyalty, and alternative accommodations to support future earnings growth, even as regulatory scrutiny intensifies. The latest EU investigation regarding compliance with the Digital Services Act brings a high-profile, but currently non-material, risk to the forefront without impacting the primary short-term catalyst, Booking’s AI-driven operational efficiency and product innovation.

The most relevant recent announcement is Booking Holdings’ ongoing expansion of strategic partnerships, such as its integration with Ryanair. These partnerships support the core investment thesis by broadening market reach and deepening customer engagement, which ties directly to the company’s efforts to drive top-line growth through enhanced platform offerings.

However, in contrast to the bullish case, investors should also be mindful of heightened regulatory risk, especially as potential fines for non-compliance with the Digital Services Act could reach up to...

Read the full narrative on Booking Holdings (it's free!)

Booking Holdings' narrative projects $32.4 billion in revenue and $9.5 billion in earnings by 2028. This requires 9.0% yearly revenue growth and a $4.7 billion increase in earnings from the current $4.8 billion.

Uncover how Booking Holdings' forecasts yield a $6100 fair value, a 11% upside to its current price.

Exploring Other Perspectives

Fair value estimates from 15 Simply Wall St Community members for Booking Holdings (US$3,869 to US$6,828) show widely varied views on its potential. Increased regulatory focus on online financial fraud highlights both opportunity and uncertainty for future performance, consider all these perspectives as you weigh your own outlook.

Explore 15 other fair value estimates on Booking Holdings - why the stock might be worth 30% less than the current price!

Build Your Own Booking Holdings Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Booking Holdings research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Booking Holdings research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Booking Holdings' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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