Core Insights - Stock splits are seen as a positive indicator of a company's performance, often following strong financial results and leading to increased stock prices [1][2] - Companies that initiate stock splits tend to outperform the market, generating average returns of 25% in the year following the announcement, compared to 12% for the S&P 500 [2] Company Summaries Netflix - Netflix has seen a stock price increase of 782% over the past decade, leading to a 10-for-1 stock split [5] - The stock is currently 41% below its peak, with concerns about asset acquisitions, but management is trusted to avoid costly deals [6] - In Q4, Netflix reported record revenue of $12 billion, a 17% increase year-over-year, and EPS rose 30% to $0.56 [7] - 70% of analysts rate Netflix as a buy or strong buy, with an average price target of $111, indicating a potential upside of 43% [7][9] - The stock trades at 31 times earnings, its lowest valuation in three years, making it an attractive buy [10] Booking Holdings - Booking Holdings has delivered over 31,000% returns over the past 25 years and recently announced a 25-for-1 stock split [11] - Despite a recent stock decline due to travel slowdown fears, Q4 revenue grew 16% to $6.3 billion, with EPS up 38% to $44.22 [12] - 77% of analysts rate the stock a buy or strong buy, with an average price target of $5,915, suggesting a potential upside of 45% [13][15] - The stock is currently 30% off its peak and trades at 24 times earnings, below its three-year average of 29, presenting a buying opportunity [15] ServiceNow - ServiceNow's stock has increased 852% over the past decade, despite a 55% drop from its peak, leading to a 5-for-1 stock split [16] - In Q4, ServiceNow reported revenue growth of 21% to $3.53 billion, with adjusted EPS up 24% to $0.92 [18] - 91% of analysts rate the stock a buy or strong buy, with an average price target of $189, indicating a potential upside of 81% [20] - The stock trades at 30 times earnings, reflecting a more reasonable valuation and strong growth prospects [21]

Core Insights - Booking Holdings (BKNG) presented its annual results for the year 2026, achieving a double beat, indicating strong performance in both revenue and earnings [1]. Group 1: Company Performance - The company has been recognized as a Quality Growth Investor, reflecting its focus on high-quality business practices and long-term growth potential [1]. - The analysis emphasizes the search for the best businesses globally to create a long-term portfolio that aims to outperform the market [1].

Group 1 - The article provides a market analysis focusing on Alphabet Inc Class A and Booking Holdings Inc, highlighting their performance and market trends [1] - Alphabet Inc Class A has shown significant growth in digital advertising revenue, contributing to its overall financial performance [1] - Booking Holdings Inc has experienced a recovery in travel demand, leading to increased bookings and revenue growth [1] Group 2 - The analysis indicates that both companies are well-positioned to capitalize on current market trends, with Alphabet benefiting from its strong digital ecosystem and Booking leveraging the rebound in travel [1] - Key financial metrics for both companies are discussed, showcasing their revenue growth percentages and market share [1] - The article emphasizes the competitive landscape in which these companies operate, noting the challenges and opportunities present in their respective industries [1]

Core Viewpoint - The article discusses potential candidates for stock splits in 2026, highlighting companies with high share prices and strong financial performance that may consider splitting their stocks to enhance accessibility for retail investors [1]. Group 1: Potential Stock Split Candidates - **MercadoLibre (MELI)**: Currently trading at approximately $1,997, it is the highest-priced major growth stock without a split history. The company reported Q3 2025 revenue of $7.41 billion, a 39% year-over-year increase, with total payment volume up 41% to $71.2 billion. Its stock has appreciated 1,910% over the past decade, making it a strong candidate for a split [1]. - **AutoZone (AZO)**: Trading near $3,745, AutoZone has not split its stock in over 30 years. The company generated $6.24 billion in Q4 2025 revenue and repurchased 117,000 shares for $446.7 million. The stock has surged 390% over the past decade, and its high price may eventually lead to a reconsideration of its split policy [1]. - **Costco (COST)**: Currently trading near $988, Costco has not split its stock since 2000. The company reported Q1 FY2026 revenue of $67.31 billion, with comparable sales up 6.4%. The stock has climbed 681% over the past decade, suggesting that management may consider a split as it approaches four-digit territory [1]. - **Meta Platforms (META)**: Trading at around $645, Meta has never split its stock despite a market cap of $1.63 trillion. The company reported Q4 2025 revenue of $59.89 billion, a 23.78% year-over-year increase. With significant share buybacks and strong financial performance, Meta has the flexibility to execute a split [1]. - **Microsoft (MSFT)**: Trading at approximately $398, Microsoft has not split its stock since February 2003. The company reported Q2 FY2026 revenue of $81.27 billion, up 16.72% year-over-year. With a market cap of $2.96 trillion and a stock price increase of 759% over the past decade, Microsoft may consider a split as analyst targets suggest further upside [1]. Group 2: Characteristics of Split Candidates - The five companies mentioned share common characteristics that typically precede stock splits: elevated share prices that create accessibility barriers, strong financial performance supporting continued appreciation, and large market capitalizations providing operational flexibility [1]. - While stock splits do not alter the fundamental value of a company, they can broaden the investor base and improve trading liquidity, which may encourage management teams to consider splits as a means to maintain retail investor participation in their growth stories [1].

Market Sentiment - The CNN Money Fear and Greed index increased to a reading of 38.5, remaining in the "Fear" zone, down from a previous reading of 39 [4] - The overall fear level in the market is reflected in the decline of U.S. stocks, with the Dow Jones index falling more than 250 points during the session [1] Economic Data - The U.S. trade deficit rose to $70.3 billion in December, up from $53 billion in the previous month, exceeding market estimates of a $55.5 billion gap [2] - U.S. wholesale inventories increased by 0.2% month-over-month to $917.2 billion in December, matching the level of November [2] - Initial jobless claims in the U.S. declined by 23,000 to 206,000 during the second week of February, compared to market estimates of 225,000 [2] Stock Market Performance - Most sectors on the S&P 500 closed negatively, with consumer discretionary, financial, and information technology stocks experiencing the largest losses [3] - The Dow Jones closed lower by approximately 268 points at 49,395.16, while the S&P 500 fell 0.28% to 6,861.89, and the Nasdaq Composite decreased by 0.31% to 22,682.73 during the session [3]

Fourth quarter room night growth of 9% exceeded expectations, fueled by resilient travel demand and strategic investments in the U.S. and Asia markets. Management attributed significant margin expansion to the Transformation Program, which achieved a $550 million annual run rate savings target by the end of 2025. The Connected Trip strategy continues to gain traction, with multi-vertical transactions growing in the high 20% range as flights serve as a critical customer acquisition funnel. The Genius ...

Core Viewpoint - U.S. equity markets faced volatility as resilient labor market data contrasted with a cautious outlook from Walmart, leading to concerns over consumer spending and geopolitical tensions impacting risk appetite [1]. Major Market Indexes Performance Recap - Major benchmarks ended in negative territory, with the S&P 500 declining 0.28% to 6,861.89, the Nasdaq Composite slipping 0.31% to 22,682.73, and the Dow Jones Industrial Average falling 267 points, or 0.54%, to close at 49,395.16 [2]. Small-Cap vs. Large-Cap Performance - The small-cap Russell 2000 managed a late-day recovery, finishing up 0.25%, indicating that smaller domestic-focused firms found support despite headwinds faced by larger retail and tech companies [3]. Economic Data Insights - Initial jobless claims fell to 206,000, significantly lower than the projected 223,000, marking the lowest level since early January, complicating the Federal Reserve's interest rate cut path [4]. - The U.S. trade deficit unexpectedly widened to -$70.3 billion in December, exceeding the forecasted -$56 billion, while the Philadelphia Fed Manufacturing Index rose to 16.3 in February from 12.6 the previous month, indicating strength in the industrial sector [5]. Corporate News and Stock Movements - Walmart reported better-than-expected fourth-quarter earnings and revenue but saw its stock fall 1.4% due to a disappointing profit forecast, overshadowing a $30 billion share buyback announcement [6]. - Deere & Company shares surged 11.6% after reporting higher-than-expected quarterly profits and raising full-year net income guidance to $4.5 billion to $5.0 billion [7]. - Etsy's stock increased by 21.2% following a significant earnings beat, while Booking Holdings dropped 7.1% amid competition concerns [8]. - Other notable stock movements included Occidental Petroleum rising 9.4%, Blue Owl Capital falling 5.9%, Robinhood Markets tumbling 11.3%, and Nvidia edging higher due to a partnership with Meta Platforms [8]. Upcoming Market Events - Investors are focused on upcoming corporate reports from Newmont Corp. and Consolidated Edison, as well as monitoring Live Nation Entertainment, Texas Roadhouse, and Sprouts Farmers Market for insights into consumer spending [9]. - Nvidia's earnings report is highly anticipated on February 25th, with geopolitical developments in Iran supporting oil prices, which rose 2.6% to $66.71 per barrel [10].

Online travel agency Booking Holdings (NASDAQ: BKNG) has long been one of the priciest stocks on the market. The parent company of Booking.com, Priceline, Kayak, and OpenTable, was trading for more than $4,200 per share as of the market close on Wednesday -- but that's all about to change. In conjunction with its fourth-quarter financial report, Booking announced plans for its first-ever forward stock split. Here's what investors need to know. Will AI create the world's first trillionaire? Our team just r ...

Core Viewpoint - Booking Holdings Inc. experienced a decline in stock price following multiple analyst firms lowering their price forecasts due to concerns over artificial intelligence potentially disrupting the traditional online travel agency model and affecting long-term growth [1] Earnings Performance - The company reported quarterly earnings of $48.80 per share, surpassing the analyst consensus estimate of $48.27 per share [2] - Quarterly sales reached $6.349 billion, exceeding the analyst consensus estimate of $6.130 billion [2] - For the first quarter, the company anticipates sales between $5.429 billion and $5.524 billion, compared to market estimates of $5.359 billion [2] Analyst Insights - RBC noted strong results with room nights, bookings, EBITDA, and EPS exceeding expectations, although first-quarter room nights and full-year margin guidance fell short of Street estimates [3] - The analyst highlighted that room nights growth was driven by acceleration in the U.S. and easing concerns over AI disruption, with loyalty and direct bookings remaining robust [3] - Nearly 90% of Booking.com room nights are non-chain, which limits aggregation risk [3] Management Commentary - Management's focus on search and merchant-of-record strengths is seen as constructive, despite a $700 million reinvestment impacting leverage [4] - The analyst from Davidson reiterated the rating based on strong results, indicating upside to guidance and consensus across all key metrics [4] Regional Performance - Room nights accelerated due to broad strength across regions, particularly in Asia and the U.S., with the latter benefiting from a tough comparison and strength in paid channels and B2B [5] - Management's commentary emphasized resilient underlying travel demand, although U.S. average daily rates (ADRs) and length of stay showed slight declines [5] Stock Performance - Booking Holdings shares fell by 8.78% to $3,895.00, marking a new 52-week low according to Benzinga Pro data [6]

Core Insights - Booking Holdings reported Q4 results that exceeded both revenue and earnings estimates, with revenue of $6.35 billion, a 16% year-over-year increase [1] - The company announced a 25-to-1 stock split, its first forward split in history, aimed at increasing liquidity and attracting retail investors [1] - Despite strong performance, the stock has declined 27% year-to-date and 32% from its 52-week high, leading to questions about its future outlook [1] Financial Performance - Gross bookings reached $43 billion, up 16% year-over-year, driven by favorable currency effects and strong demand for accommodations and flights [1] - Room nights grew 9%, marking the fourth consecutive quarter of acceleration, exceeding the company's guidance of 4% to 6% [1] - Adjusted EBITDA rose to $2.2 billion, with margins expanding to 34.6% from 33.8% a year ago, aided by $250 million in savings from a transformation program [1] Shareholder Returns - The quarterly dividend was raised by 9.4% to $10.50 per share, alongside $2.1 billion in stock buybacks, with $21.8 billion still authorized for future buybacks [1] - For the full year 2025, the company returned $8.2 billion to shareholders through buybacks and dividends [1] Guidance and Market Reaction - Guidance for 2026 includes projected Q1 revenue growth of 14% to 16% and full-year adjusted revenue growth in the low double digits [1] - Citi analysts reduced their price target from $6,500 to $6,250, citing market volatility and slightly weaker-than-expected earnings guidance [1] - The stock's decline post-announcement indicates investor skepticism despite the company's solid fundamentals [1]