Although artificial intelligence (AI) has been the stock market’s hottest trend over the last few years, it’s not the only one responsible for lifting the tide on Wall Street. Stock-split euphoria has also intrigued investors.
A stock split allows a publicly traded company to alter its share price and outstanding share count without impacting its market cap or underlying operating performance. Companies that have conducted forward splits to reduce their share price and make their stock more nominally affordable for retail investors have a history of outperforming the benchmark S&P 500. Today, courtesy of online travel company Booking Holdings (BKNG 0.61%), we’re witnessing the first blockbuster stock split of 2026 take shape.
Image source: Getty Images.
Wall Street’s biggest stock split (thus far) of 2026 has arrived
In mid-February, the parent company of Booking.com, Priceline, Kayak, and OpenTable announced plans to complete a 25-for-1 forward split. It’s the company’s first-ever forward split, but its second overall following a 1-for-6 reverse split in 2003.
Before trading commences today, April 2, this mammoth stock split will take effect, reducing Booking’s share price to around $184 per share, based on its $4,062.14 closing price on March 27. This should make it considerably easier for retail investors to participate in Booking Holdings’ growth story.
Over the trailing 25-year period, shares of Booking have soared just over 31,800%, including dividends. High-octane gains like this don’t occur by accident. They’re a reflection of Booking’s well-defined competitive advantages.
Booking Holdings’ most prominent advantage becomes apparent when looking beyond the borders of the United States. It’s one of Europe’s largest players in online travel bookings and is generating significant sales growth from its expansion in Asia. By focusing its efforts overseas, Booking has avoided being bogged down by the hypercompetitive U.S. online travel market and established a sustainable moat.
Booking Holdings
Today’s Change
(-0.61%) $-25.76
Current Price
$4184.56
Key Data Points
Market Cap
$133B
Day’s Range
$4051.22 – $4250.15
52wk Range
$3765.45 – $5839.41
Volume
78
Avg Vol
409K
Gross Margin
97.15%
Dividend Yield
0.94%
This is a good time to mention that travel is a cyclical industry. Although recessions and economic slowdowns are perfectly normal, the U.S. and global economy spend far more time expanding than contracting. Put simply, it means Booking benefits from the disproportionate nature of economic cycles.
One of the more exciting long-term growth catalysts for Booking Holdings is its Connected Trip strategy. Booking’s leadership is leaning into generative AI as a tool to offer personalized travel recommendations and answer customer queries. The goal with gen-AI is to keep more consumers within its service ecosystem. If travelers bundle their hotel with a flight, car rental, and/or attractions, it means more revenue and juicier margins for Booking.
The final piece of the puzzle is that its valuation has typically made sense for growth-seeking investors.
Following its recent modest pullback, shares can be scooped up for 13 times forecast earnings per share in 2027, representing a 42% discount to its average forward price-to-earnings ratio over the last half-decade. Once this stock split goes into effect, retail investors will have an opportunity to buy into the Booking Holdings growth story at a historically low valuation.