Stock Price Trends

Booking Holdings Inc (BKNG)

Booking Holdings Inc. is an American travel technology company organized in Delaware and based in Norwalk, Connecticut, that owns and operates several travel fare aggregators and travel fare metasearch engines including namesake and flagship Booking.com, Priceline.com, Agoda.com, Kayak.com, Cheapflights, Rentalcars.com, Momondo, and OpenTable.

Stock Price Trends

Stock price trends estimated using linear regression.

Key facts

  • The primary trend is increasing.
  • The growth rate of the primary trend is 47.87% per annum.
  • BKNG price at the close of November 20, 2024 was $5,016.43 and was inside the primary price channel.
  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 256.35% per annum.
  • BKNG price at the close of November 20, 2024 was inside the secondary price channel.

Linear Regression Model

Model equation:
Yi = α + β × Xi + εi

Top border of price channel:
Exp(Yi) = Exp(a + b × Xi + 2 × s)

Bottom border of price channel:
Exp(Yi) = Exp(a + b × Xi – 2 × s)

where:

i - observation number
Yi - natural logarithm of BKNG price
Xi - time index, 1 day interval
σ - standard deviation of εi
a - estimator of α
b - estimator of β
s - estimator of σ
Exp() - calculates the exponent of e


Primary Trend

Start date: June 16, 2022
End date: November 20, 2024

a = 6.4732

b = 0.0011

s = 0.0716

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0011) – 1
= 47.87%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0716) – 1
= 33.17%

June 16, 2022 calculations

Top border of price channel:

Exp(Y646)
= Exp(a + b × X646 + 2 × s)
= Exp(a + b × 938 + 2 × s)
= Exp(6.4732 + 0.0011 × 938 + 2 × 0.0716)
= Exp(7.6216)
= $2,041.82

Bottom border of price channel:

Exp(Y646)
= Exp(a + b × X646 – 2 × s)
= Exp(a + b × 938 – 2 × s)
= Exp(6.4732 + 0.0011 × 938 – 2 × 0.0716)
= Exp(7.3352)
= $1,533.27

November 20, 2024 calculations

Top border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 + 2 × s)
= Exp(a + b × 1,826 + 2 × s)
= Exp(6.4732 + 0.0011 × 1,826 + 2 × 0.0716)
= Exp(8.5732)
= $5,287.85

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(6.4732 + 0.0011 × 1,826 – 2 × 0.0716)
= Exp(8.2867)
= $3,970.84

Description

  • The primary trend is increasing.
  • The growth rate of the primary trend is 47.87% per annum.
  • BKNG price at the close of November 20, 2024 was $5,016.43 and was inside the primary price channel.

Secondary Trend

Start date: August 2, 2024
End date: November 20, 2024

a = 2.1576

b = 0.0035

s = 0.0266

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0035) – 1
= 256.35%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0266) – 1
= 11.21%

August 2, 2024 calculations

Top border of price channel:

Exp(Y1,180)
= Exp(a + b × X1,180 + 2 × s)
= Exp(a + b × 1,716 + 2 × s)
= Exp(2.1576 + 0.0035 × 1,716 + 2 × 0.0266)
= Exp(8.1849)
= $3,586.26

Bottom border of price channel:

Exp(Y1,180)
= Exp(a + b × X1,180 – 2 × s)
= Exp(a + b × 1,716 – 2 × s)
= Exp(2.1576 + 0.0035 × 1,716 – 2 × 0.0266)
= Exp(8.0787)
= $3,224.88

November 20, 2024 calculations

Top border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 + 2 × s)
= Exp(a + b × 1,826 + 2 × s)
= Exp(2.1576 + 0.0035 × 1,826 + 2 × 0.0266)
= Exp(8.5678)
= $5,259.68

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(2.1576 + 0.0035 × 1,826 – 2 × 0.0266)
= Exp(8.4616)
= $4,729.68

Description

  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 256.35% per annum.
  • BKNG price at the close of November 20, 2024 was inside the secondary price channel.