Airbnb (ABNB) AI Stock Analysis

• Market Cap: $80.32B
• Dividend Yield: N/A
• Average Volume (3M): 5.28M
• Price to Earnings (P/E): 33.1
• Beta (1Y): 1.28
• Revenue Growth: 10.56%
• EPS Growth: 47.16%
• Country: US
• Employees: 7,300
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Travel Services
• EPS (TTM): 0.56
• Shares Outstanding: 423,573,270
• 10 Day Avg. Volume: 4,044,982
• 30 Day Avg. Volume: 5,280,009
• PEG Ratio: -15.43
• Price to Book (P/B): 10.15
• Price to Sales (P/S): 6.80
• P/FCF Ratio: 17.91
• Enterprise Value/Market Cap: 0.92
• Enterprise Value/Revenue: 6.06
• Enterprise Value/Gross Profit: 7.30
• Enterprise Value/Ebitda: 29.14
• 1Y Price Target: $146.16
• Price Target Upside: 10.77% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 28
• EPS Forecast (FY): 4.96
• Revenue Forecast (FY): $13.70B

• Rating: 75 Outperform
• Price Target: $142.00 ▲(7.62% Upside)
• Action: Reiterated Date: 03/17/26
• Date: Action: Reiterated 03/17/26

The score is driven primarily by strong financial performance (high margins, robust and rising free cash flow, and conservative leverage) and a positive earnings call with confident 2026 growth guidance and stable margin outlook. These strengths are moderated by weaker technical positioning (trading below major moving averages) and a growth-priced valuation (P/E ~33 with no dividend), with the debt refinancing modestly positive but adding fixed-rate interest burden.

Positive Factors

Strong free cash flow generation

Sustained, sizable free cash flow (~$4.6B in 2025) provides durable funding for buybacks, product investment, and debt servicing. Consistent FCF that tracks earnings improves resilience through cycles, supports capital allocation optionality, and reduces reliance on external financing over the next 2–6 months.

High gross and healthy operating margins

Very high gross margins reflect a scalable, asset-light marketplace model with low incremental cost per booking. Stable ~21% operating margins indicate durable operating leverage as revenue grows, enabling reinvestment or shareholder returns while preserving cash generation even if top-line growth moderates.

Product-led growth and conversion gains

Repeatable product changes that materially improved conversion and GBV are structural levers: they can increase lifecycle bookings, raise take-rates, and reduce marketing dependence. Built-in improvements to pricing and UX provide a multi-quarter runway for sustainable demand and margin expansion.

Negative Factors

Volatile revenue growth profile

An inconsistent growth pattern reduces predictability for cash flows and makes planning capital allocation harder. Large year-to-year swings imply some growth elements may be timing-driven or nonrecurring, limiting visibility into sustainable top-line expansion over the next several quarters.

Increased cancellations from Pay-Later product

Higher cancellations can erode realized revenue, raise customer-service and refund costs, and weaken unit economics for affected cohorts. If the pattern persists as the product scales, it could pressure adjusted revenue per booking and require additional underwriting, reinvestment, or pricing adjustments.

Refinancing adds fixed-rate interest burden

Extending maturities reduces near-term refinancing risk but replaces zero-coupon convertibles with multi-year fixed-rate debt, increasing cash interest expense. Higher recurring interest reduces free cash flow available for buybacks or reinvestment and introduces sensitivity to rate-driven cash outflows over the medium term.

Airbnb Business Overview & Revenue Model

Company Description

Airbnb, Inc., together with its subsidiaries, operates a platform that enables hosts to offer stays and experiences to guests worldwide. The company's marketplace model connects hosts and guests online or through mobile devices to book spaces and experiences. It primarily offers private rooms, primary homes, or vacation homes. The company was formerly known as AirBed & Breakfast, Inc. and changed its name to Airbnb, Inc. in November 2010. Airbnb, Inc. was founded in 2007 and is headquartered in San Francisco, California.

How the Company Makes Money

Airbnb primarily makes money by charging fees related to bookings made on its platform. The company’s core revenue stream is service fees assessed on accommodation reservations (and, where applicable, other booked offerings such as experiences). These fees are generally collected from guests and/or hosts as a percentage of the booking subtotal, and Airbnb recognizes revenue when the booked stay or experience occurs (net of certain amounts it remits, such as taxes where it is obligated to collect and remit). Key revenue streams and drivers include: - Service fees on accommodation bookings: When a guest books a stay, Airbnb charges a service fee that is typically a percentage of the booking amount. Depending on the fee structure used for a listing, Airbnb may also charge a host service fee, and in some cases it uses a “host-only” fee model where the host pays most of the platform fee and the guest fee may be reduced. - Fees on experiences (where available): For Airbnb-hosted experiences, Airbnb earns revenue by taking a service fee from the booking value. - Payment processing and related fees: Airbnb facilitates payments between guests and hosts and may earn revenue associated with payment processing and certain ancillary guest/host charges tied to transactions on the platform. Significant factors contributing to earnings include: - Booking volume and pricing: Nights and experiences booked, average daily rates, length of stay, and mix of geographies and listing types directly affect gross booking value and therefore fee revenue. - Take rate (effective fee rate): Product mix, fee structure (guest vs. host paid), competitive dynamics, and promotional activity influence the percentage of booking value Airbnb retains as revenue. - Host and guest ecosystem: Growth in active listings, host retention, guest repeat usage, and brand-driven direct traffic can improve scale and reduce reliance on paid marketing. Partnerships and ecosystem elements that can support monetization include integrations and collaborations that help hosts manage inventory and operations (e.g., property management system channel integrations), as well as agreements with certain jurisdictions for tax collection/remittance processes. Specific partnership terms and financial contributions beyond Airbnb’s public disclosures are null.

Airbnb Financial Statement Overview

Summary

Strong profitability and cash generation supported by high gross margins (~82–83%), solid operating margins (~21% in 2025), rising free cash flow (~$4.6B in 2025), and low leverage (debt-to-equity ~0.24 in 2025). Offsets include a less consistent growth profile (including an unusually high 2025 growth figure in the data) and some variability in net margin versus 2024.

Income Statement

Airbnb shows strong, improving profitability with consistently high gross margins (~82–83%) and solid operating margins around ~21% in 2025. Revenue has scaled materially since 2020, though growth normalized in 2024 (~12%) and appears unusually high in 2025 (shown as ~250%), which suggests more volatility in the growth trajectory than a straight-line trend. Net margins remain healthy (~21% in 2025), but are below 2024 levels, indicating some pressure on bottom-line efficiency despite stable operating profitability.

Balance Sheet

The balance sheet looks conservative with low leverage: debt-to-equity improved to ~0.24 in 2025 from ~0.51 in 2021, alongside growing equity and assets. Returns on equity are strong (~31% in 2025), reflecting effective profitability against the capital base. The key weakness is that historical profitability was volatile (losses in 2020–2021), which matters for assessing durability through a full cycle even though current leverage is manageable.

Cash Flow

Cash generation is a standout: operating cash flow and free cash flow are both strong and rising (free cash flow ~$4.6B in 2025 vs. ~$3.4B in 2022). Free cash flow tracks net income closely (about 1.0x in recent years), indicating earnings quality is solid. A watch item is that the provided “operating cash flow coverage” metric sits in the ~0.34–0.44 range recently (and was negative in 2020), implying cash flow strength should still be monitored relative to obligations even though absolute cash generation is robust.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	12.24B	11.10B	9.92B	8.40B	5.99B
Gross Profit	10.15B	9.22B	8.21B	6.90B	4.84B
EBITDA	2.54B	2.62B	1.56B	1.97B	276.00M
Net Income	2.51B	2.65B	4.79B	1.89B	-352.00M
Balance Sheet
Total Assets	22.21B	20.96B	20.64B	16.04B	13.71B
Cash, Cash Equivalents and Short-Term Investments	11.01B	10.61B	10.07B	9.62B	8.32B
Total Debt	2.07B	2.29B	2.30B	2.34B	2.42B
Total Liabilities	14.01B	12.55B	12.48B	10.48B	8.93B
Stockholders Equity	8.20B	8.41B	8.16B	5.56B	4.78B
Cash Flow
Free Cash Flow	4.65B	4.52B	3.88B	3.40B	2.31B
Operating Cash Flow	4.65B	4.52B	3.88B	3.43B	2.31B
Investing Cash Flow	-748.00M	-616.00M	-1.04B	-28.00M	-1.35B
Financing Cash Flow	-3.83B	-3.57B	-2.43B	-689.00M	1.31B

Airbnb Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 131.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ABNB, the sentiment is Positive. The current price of 131.95 is above the 20-day moving average (MA) of 130.79, above the 50-day MA of 130.24, and above the 200-day MA of 128.57, indicating a bullish trend. The MACD of 0.57 indicates Positive momentum. The RSI at 53.08 is Neutral, neither overbought nor oversold. The STOCH value of 24.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ABNB.

Airbnb Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ABNB	75 Outperform	$80.32B	33.13	30.88%	―	10.56%	47.16%
TCOM	71 Outperform	$34.59B	4.41	20.98%	0.39%	17.34%	91.51%
BKNG	69 Neutral	$140.70B	30.43	-93.64%	0.71%	12.96%	3.66%
EXPE	62 Neutral	$29.56B	27.45	114.29%	0.56%	7.29%	36.51%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MMYT	53 Neutral	$4.34B	276.78	31.18%	―	14.55%	-68.46%
TRIP	51 Neutral	$1.09B	45.50	6.10%	―	4.24%	159.81%

Airbnb Corporate Events

Airbnb Refinances Convertible Debt With New Senior Notes

On March 12, 2026, Airbnb, Inc. entered an underwriting agreement with major investment banks to issue $2.5 billion of senior unsecured notes across three tranches maturing in 2029, 2031 and 2036, with coupons ranging from 4.400% to 5.250%. The notes, governed by an indenture with U.S. Bank Trust Company as trustee, include standard redemption options, change-of-control repurchase rights, restrictive covenants on liens and sale-leasebacks, and customary default provisions, reinforcing creditor protections while preserving some financial flexibility.

The offering closed on March 16, 2026, and Airbnb used the net proceeds to repay $2.0 billion of 0% convertible senior notes that matured the same day. This transaction effectively refinances short-term, equity-linked debt with longer-dated fixed-rate obligations, extending the company’s debt maturity profile and reducing near-term refinancing risk for bondholders and other stakeholders.

The most recent analyst rating on (ABNB) stock is a Buy with a $170.00 price target. To see the full list of analyst forecasts on Airbnb stock, see the ABNB Stock Forecast page.