Airbnb (ABNB) AI Stock Analysis

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Airbnb

(NASDAQ:ABNB)

Select Model

Outperform 76 (OpenAI - 4o)

Rating:76Outperform

Price Target:

$144.00

▲(14.77% Upside)

Airbnb's overall stock score of 76 reflects strong financial performance and positive earnings call sentiment, which are the most significant factors. The high valuation and mixed technical indicators slightly temper the score, but the company's strategic initiatives and global expansion efforts provide a positive outlook.

Positive Factors

Revenue Growth

Airbnb's consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion.

Global Expansion

Successful global expansion enhances Airbnb's market presence and diversifies revenue streams, reducing reliance on mature markets.

Cash Generation

Strong cash generation provides financial flexibility for strategic investments and shareholder returns, bolstering long-term stability.

Negative Factors

North America Growth Challenges

Slower growth in North America could limit overall revenue expansion, highlighting the need for strategic adjustments in this key market.

Scaling Services

The early stage of service offerings suggests a longer timeline before they significantly impact revenue, requiring sustained investment and innovation.

Tougher Growth Comparisons

Anticipated tougher growth comparisons may pressure future earnings, necessitating strategic initiatives to maintain investor confidence.

Airbnb (ABNB) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$76.56B

Dividend YieldN/A

Average Volume (3M)5.44M

Price to Earnings (P/E)29.7

Beta (1Y)1.28

Revenue Growth10.23%

EPS Growth-44.56%

CountryUS

Employees7,300

SectorConsumer Cyclical

Sector Strength84

IndustryTravel Services

Share Statistics

EPS (TTM)1.03

Shares Outstanding429,079,560

10 Day Avg. Volume5,127,835

30 Day Avg. Volume5,439,074

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap0.96

Enterprise Value/Revenue6.37

Enterprise Value/Gross Profit7.65

Enterprise Value/Ebitda27.65

Forecast

1Y Price Target

$138.70

Price Target Upside10.54% Upside

Rating ConsensusHold

Number of Analyst Covering30

Airbnb Business Overview & Revenue Model

Company DescriptionAirbnb, Inc. (ABNB) is a global online marketplace that connects travelers seeking unique accommodations with hosts offering various lodging options, including homes, apartments, and unique stays like treehouses and castles. Founded in 2008, Airbnb operates in the travel and hospitality sector, providing a platform that enables individuals to list, discover, and book accommodations around the world. In addition to lodging, Airbnb has expanded its offerings to include experiences and adventures, allowing users to engage in local activities hosted by residents.

How the Company Makes MoneyAirbnb generates revenue primarily through service fees charged to both hosts and guests. When a booking is made, Airbnb collects a percentage of the transaction as a service fee from the guest, which typically ranges from 5% to 15%, depending on the booking subtotal. Additionally, hosts are charged a flat 3% fee for each booking. This dual revenue stream from both sides of the marketplace is a core component of Airbnb's business model. Furthermore, Airbnb has ventured into the Experiences segment, where it charges hosts a percentage of the booking fee for activities offered. The company also benefits from partnerships with various organizations, such as travel agencies and tourism boards, enhancing its reach and offerings. Overall, Airbnb's diversified revenue model, combined with its extensive global presence and unique product offerings, contributes significantly to its earnings.

Airbnb Key Performance Indicators (KPIs)

Any

Gross Booking Value

Gross Booking Value
Reflects the total dollar amount of all bookings on the platform, indicating the overall demand and popularity of Airbnb's offerings and its ability to capture market share in the travel industry.

Chart InsightsAirbnb's Gross Booking Value has shown a robust recovery post-pandemic, with consistent growth since 2023. The upward trajectory, especially evident in 2024 and 2025, suggests strong demand and effective strategic initiatives. Despite seasonal fluctuations, the sustained increase highlights Airbnb's resilience and adaptability in the travel industry. This momentum indicates potential for continued revenue growth, making it an attractive prospect for investors seeking exposure to the travel sector's rebound.

Data provided by:

Main Street Data

Airbnb Earnings Call Summary

Earnings Call Date:Aug 06, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Oct 29, 2025

Earnings Call Sentiment Positive

The earnings call revealed strong financial performance and successful strategic initiatives, particularly in global expansion and new service offerings. However, the company faces challenges in sustaining growth in North America and expects tougher comparisons in the upcoming quarters.

Q2-2025 Updates

Positive Updates

Strong Q2 Performance

Airbnb exceeded expectations across key metrics, including bookings, revenue, and margin. Revenue for the quarter was $3.1 billion, up 13% year-over-year. Adjusted EBITDA reached $1 billion, a 34% margin up from 32.5% last year.

Record Net Income and EPS Growth

Net income was $642 million and EPS grew 16% to $1.03, with a 20% increase in earnings per share.

Expansion in Global Markets

Nights booked in expansion markets grew at twice the rate of core markets for 6 consecutive quarters. Notable growth in Japan with a 15% increase in first-time bookers.

Successful Launch of Airbnb Services and Experiences

Airbnb launched services and reimagined experiences, generating over 13,000 press stories and nearly 660 million social media impressions. The new offerings have an average guest rating of 4.93 out of 5 stars.

Strong Balance Sheet and Share Repurchase Program

Airbnb generated $1 billion of free cash flow in Q2 and announced a new authorization to purchase up to an additional $6 billion of Class A common stock.

Negative Updates

Slower Growth in North America

North America exhibited low single-digit growth, indicating a slowdown compared to other regions.

Tougher Year-Over-Year Comparisons Expected

Airbnb expects year-over-year growth comparisons to become tougher towards the end of Q3 and into Q4, impacting growth rates later in the year.

Challenges in Scaling Services

While services show promise, they are still very early in development, indicating a longer time horizon for significant impact.

Company Guidance

During Airbnb's second-quarter earnings call for 2025, the company exceeded expectations across several key metrics, including a 13% year-over-year revenue increase to $3.1 billion and a 34% adjusted EBITDA margin. The company also reported a net income of $642 million, translating to an EPS of $1.03, which grew by 16% and 20%, respectively. Airbnb's strategic priorities were highlighted, with significant progress in enhancing core services, expanding globally, and launching new offerings such as Airbnb services and reimagined experiences. This launch, part of the 2025 summer release, generated substantial media coverage, with 13,000 press stories and 660 million social media impressions. The average guest rating for these new services and experiences was 4.93 stars out of 5, surpassing the 4.8 average rating for homes. The company also noted a growing interest from potential hosts, with over 60,000 applications submitted to host a service or experience. Looking ahead, Airbnb anticipates Q3 revenue to range between $4.02 billion and $4.1 billion, representing year-over-year growth of 8% to 10%, and expects adjusted EBITDA to exceed $2 billion. The company also announced a new share repurchase program, authorizing the purchase of up to an additional $6 billion of its Class A common stock.

Airbnb Financial Statement Overview

Summary

Airbnb demonstrates strong financial health with robust income statement performance, a solid balance sheet, and efficient cash flow management. The company shows impressive profitability and revenue growth, although there is room for improvement in equity growth and cash flow generation.

Income Statement

Very Positive

Airbnb has shown robust performance in its income statement. The company's Gross Profit Margin is strong at 80.0% TTM (Trailing-Twelve-Months), indicating efficient cost management. The Net Profit Margin is also impressive at 22.6% TTM, highlighting profitability. Revenue has grown steadily, with a 13.6% increase from 2022 to 2023 and a further 12.1% increase in 2024. EBIT and EBITDA margins remain healthy, reinforcing Airbnb's solid earnings capability.

Balance Sheet

Positive

Airbnb's balance sheet reflects a balanced financial position with a Debt-to-Equity Ratio of 0.25 TTM, suggesting manageable leverage. The Return on Equity (ROE) is excellent at 31.9% TTM, indicating effective use of equity capital. The Equity Ratio is 31.7% TTM, showcasing a stable asset base. However, there is room for improvement in equity growth to enhance financial stability further.

Cash Flow

Positive

The cash flow statement is strong, with a positive Free Cash Flow of 4.4 billion TTM, showing effective cash generation. The Operating Cash Flow to Net Income Ratio is 1.73 TTM, indicating strong cash earnings. Free Cash Flow to Net Income Ratio is favorable at 1.73 TTM. However, the Free Cash Flow growth has slowed recently, suggesting potential areas for improvement in cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.58B	11.10B	9.92B	8.40B	5.99B	3.38B
Gross Profit	9.64B	9.22B	8.21B	6.90B	4.84B	2.50B
EBITDA	2.67B	2.62B	1.56B	1.97B	276.00M	-4.38B
Net Income	2.63B	2.65B	4.79B	1.89B	-352.00M	-4.58B
Balance Sheet
Total Assets	26.99B	20.96B	20.64B	16.04B	13.71B	10.49B
Cash, Cash Equivalents and Short-Term Investments	11.36B	10.61B	10.07B	9.62B	8.32B	6.39B
Total Debt	2.28B	2.29B	2.30B	2.34B	2.42B	2.33B
Total Liabilities	19.21B	12.55B	12.48B	10.48B	8.93B	7.59B
Stockholders Equity	7.78B	8.41B	8.16B	5.56B	4.78B	2.90B
Cash Flow
Free Cash Flow	4.29B	4.52B	3.88B	3.40B	2.31B	-667.10M
Operating Cash Flow	4.31B	4.52B	3.88B	3.43B	2.31B	-629.73M
Investing Cash Flow	-664.00M	-616.00M	-1.04B	-28.00M	-1.35B	79.59M
Financing Cash Flow	-4.04B	-3.57B	-2.43B	-689.00M	1.31B	2.94B

Airbnb Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price125.47

Price Trends

50DMA

129.45

Negative

100DMA

130.76

Negative

200DMA

130.73

Negative

Market Momentum

MACD

-1.61

Negative

RSI

49.50

Neutral

STOCH

53.46

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ABNB, the sentiment is Neutral. The current price of 125.47 is below the 20-day moving average (MA) of 125.60, below the 50-day MA of 129.45, and below the 200-day MA of 130.73, indicating a bearish trend. The MACD of -1.61 indicates Negative momentum. The RSI at 49.50 is Neutral, neither overbought nor oversold. The STOCH value of 53.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ABNB.

Airbnb Risk Analysis

Airbnb disclosed 53 risk factors in its most recent earnings report. Airbnb reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Airbnb Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ABNB	76 Outperform	$76.56B	29.72	33.26%	―	10.23%	-44.56%
TCOM	73 Outperform	51.45B	21.24	11.97%	0.36%	17.73%	27.95%
EXPE	72 Outperform	27.86B	27.55	133.13%	0.54%	5.69%	47.33%
BKNG	67 Neutral	179.99B	38.63	-72.30%	0.69%	11.72%	0.51%
TRIP	66 Neutral	2.15B	40.23	10.37%	―	3.03%	187.03%
MMYT	65 Neutral	9.23B	112.63	7.91%	―	18.13%	-55.21%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

* Consumer Cyclical Sector Average

Performance Comparison

ABNB

Airbnb

125.47

-5.71

-4.35%

TCOM

Trip.com Group Sponsored ADR

78.15

29.71

61.33%

EXPE

Expedia

221.92

78.80

55.06%

MMYT

Makemytrip

99.28

-9.19

-8.47%

BKNG

Booking Holdings

5,442.88

1,407.81

34.89%

TRIP

TripAdvisor

19.14

4.24

28.46%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 03, 2025