Booking Holdings Inc. (BKNG): Billionaire Ray Dalio Likes This Travel Company

Key Takeaways

• Bridgewater holds >2 million Booking shares, up 100% Q1 2025.
• 25‑for‑1 split set for April 6 2026 boosts retail accessibility.
• Shift to merchant model lifts revenue 16% YoY to $6.35 B.
• Net margin reaches 20%, indicating strong profitability.
• Dalio’s backing signals confidence despite AI stock competition.

Summary

Bridgewater Associates, led by billionaire Ray Dalio, has dramatically increased its stake in Booking Holdings, now owning over 2 million shares after a 100% jump in Q1 2025. The travel giant is preparing a 25‑for‑1 stock split on April 6 2026, which could broaden retail participation and improve options liquidity. A strategic shift toward a merchant‑model payment system helped Booking post a 16% year‑over‑year revenue rise to $6.35 billion and a 20% net margin in the latest quarter. While some analysts favor AI stocks, Dalio’s continued investment underscores confidence in Booking’s growth trajectory.

Pulse Analysis

Bridgewater Associates’ growing commitment to Booking Holdings reflects a broader trend of institutional investors seeking exposure to resilient consumer‑focused platforms. Dalio’s fund moved from a modest 31,000‑share position in 2021 to more than 2 million shares by the end of 2025, a scale that often signals confidence in a company’s long‑term cash‑flow generation. In the post‑pandemic travel rebound, Booking’s diversified portfolio of hotels, flights, and experiences offers a stable revenue base, making it an attractive hedge against cyclical volatility.

The announced 25‑for‑1 stock split slated for April 6 2026 is more than a cosmetic change; it lowers the per‑share price, inviting retail investors who were previously priced out. Such splits historically boost trading volume and tighten bid‑ask spreads, especially in the options market, where increased liquidity can lead to tighter implied volatility and more efficient price discovery. Analysts anticipate that the expanded investor pool could prompt a modest re‑rating of Booking’s valuation multiples, aligning the stock with peers that have undergone similar splits.

Beyond capital structure, Booking’s pivot to a merchant‑model payment system is reshaping its profit dynamics. By processing payments directly, the company retains transaction cash longer, enhancing margin expansion and enabling bundled service offerings. The model contributed to a 16% YoY revenue increase to $6.35 billion and a robust 20% net margin, underscoring operational efficiency. While AI‑driven competitors garner headlines, Booking’s strategic initiatives and strong institutional backing suggest it remains well‑positioned to capture sustained growth in the global travel ecosystem.