The Nasdaq Composite (^IXIC +0.35%) has been the star of 2023 (so far), and even brief downturns in the market haven't been able to stop the index's strong momentum. That was evident again on Friday, as the Nasdaq climbed about 0.75% just before noon ET to lead the broader stock market higher.
Growth stocks are front and center in the minds of Nasdaq investors, and two of Friday's big gainers showed definite signs of continuing to grow. Both Booking Holdings (BKNG 1.78%) and Atlassian (TEAM 3.02%) have wowed shareholders with their rise to prominence over the years, and both companies reported strong financial results that revealed that the favorable prospects each of them has remain fully intact.
The summer sun is shining on Booking Holdings
Shares of Booking Holdings were up nearly 10% at midday on Friday. The online travel services provider reported second-quarter financial results that showed tremendous growth, and it predicted more of the same to come as summer ramps up.
The ongoing rebound in the travel industry was clear from Booking's latest numbers. Gross travel bookings were up 15% year over year to $39.7 billion. Total revenue climbed 27% to $5.5 billion, while adjusted net income of $1.4 billion was 79% higher than in the year-earlier period. Thanks in part to a big drawdown in the number of shares outstanding, Booking's adjusted earnings of $37.62 per share were nearly double what it posted in the second quarter of 2022.
NASDAQ: BKNG
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Booking was able to keep growing its business even as it starts to see its year-over-year comparisons get tougher. Room nights booked were up just 9% to 268 million, while rental car days booked climbed 24% and airline tickets soared 58% from year-ago levels.
CEO Glenn Fogel was optimistic about Booking's outlook, as he indicated that strong trends continued into July and have set the stage for a record summer season for the third quarter. In addition, as investors get excited about the company's planned AI-enabled travel assistants, Booking is participating in the artificial intelligence trend as well.
Atlassian soars on renewed cloud hopes
Elsewhere, shares of Atlassian jumped 19%. The online collaboration software provider reported fiscal fourth-quarter financial results for the period ended June 30 that showed renewed growth and a better outlook for the immediate future.
Atlassian reported a 24% rise in revenue year over year to $939 million. Adjusted net income more than doubled from year-ago levels to $147 million, working out to $0.57 per share. Free cash flow weighed in at $270 million.
NASDAQ: TEAM
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The close of the 2023 fiscal year gave Atlassian cause to celebrate. The company now boasts more than 260,000 customers, 250,000 of which are using its cloud platform. Its efforts to woo larger customers have started to bear fruit, most notably as Atlassian updates its software to provide support for the largest user bases. Best of all, Atlassian is finding ways to incorporate AI into its products, increasing productivity and responding to rapid shifts across the technology industry.
As a result of its efforts, Atlassian projected that cloud revenue would likely rise 25% to 30% in fiscal 2024, with continued strong margin performance contributing to profitability. With so many customers looking to take advantage of artificial intelligence, Atlassian believes that digital transformation efforts are going to get accelerated across the board. That should bode well for its workplace collaboration business for years to come.
