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Airbnb (ABNB)
NASDAQ:ABNB
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Airbnb
(NASDAQ:ABNB)
Rating:75Outperform
Price Target:
$147.00
▲(12.68% Upside)
Positive Factors
Growth and Demand
Travel demand picked up and supported accelerating Nights growth, with growth rates for May and June outpacing Q1.
Pricing Strategy
The transition to a host-pay fee model is seen as a positive move in terms of pricing simplicity.
Negative Factors
Future Growth Challenges
Airbnb anticipates a challenging comparison for Q4, expecting slower growth compared to earlier periods.
Host Sentiment
There may be some pushback from hosts around the potential for reduced earnings.
Airbnb (ABNB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$78.85B
Dividend YieldN/A
Average Volume (3M)4.87M
Price to Earnings (P/E)31.3
Beta (1Y)1.26
Revenue Growth10.23%
EPS Growth-44.56%
CountryUS
Employees7,300
SectorConsumer Cyclical
Sector Strength79
IndustryTravel Services
Share Statistics
EPS (TTM)1.03
Shares Outstanding429,079,560
10 Day Avg. Volume4,248,605
30 Day Avg. Volume4,868,105
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 Cap0.94
Enterprise Value/Revenue6.37
Enterprise Value/Gross Profit7.65
Enterprise Value/Ebitda27.65
Forecast
1Y Price Target
$140.91Price Target Upside8.01% Upside
Rating ConsensusHold
Number of Analyst Covering31
Airbnb Business Overview & Revenue Model
Company DescriptionAirbnb, 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 MoneyAirbnb primarily makes money through service fees charged to both hosts and guests for bookings made on its platform. When a booking is completed, Airbnb charges hosts a service fee, typically around 3% of the booking subtotal, which includes the nightly rate plus any cleaning fees, but excluding Airbnb fees and taxes. Guests are charged a service fee, usually ranging from 5% to 15% of the booking subtotal, depending on the length of the stay and the total cost. Additionally, Airbnb earns revenue from its 'Experiences' offering, where users can book activities hosted by local experts. The company also leverages partnerships with various third-party service providers to enhance its service offerings, such as payment processing and insurance, which further contributes to its revenue generation.
Airbnb Key Performance Indicators (KPIs)
Any
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.
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.
Data provided by:
Main Street Data
Main Street DataAirbnb 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
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.85
Very Positive
Balance Sheet
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.78
Positive
Cash Flow
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.82
Very Positive
| 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
Positive
130.46
Price Trends
132.14
Negative
129.39
Positive
131.49
Negative
Market Momentum
-1.04
Negative
53.16
Neutral
81.71
Negative
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 130.46 is above the 20-day moving average (MA) of 126.14, below the 50-day MA of 132.14, and below the 200-day MA of 131.49, indicating a neutral trend. The MACD of -1.04 indicates Negative momentum. The RSI at 53.16 is Neutral, neither overbought nor oversold. The STOCH value of 81.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $78.85B | 31.33 | 33.26% | ― | 10.23% | -44.56% | |
73 Outperform | $43.38B | 18.98 | 12.94% | 0.37% | 17.73% | 27.95% | |
72 Outperform | $26.43B | 26.14 | 129.04% | 0.56% | 5.69% | 47.33% | |
68 Neutral | $9.76B | 116.31 | 22.38% | ― | 18.13% | -55.21% | |
67 Neutral | $184.92B | 39.68 | -146.32% | 0.65% | 11.72% | 0.51% | |
66 Neutral | $1.99B | 35.96 | 8.76% | ― | 3.03% | 187.03% | |
61 Neutral | $17.78B | 13.97 | -5.40% | 3.03% | 1.50% | -15.71% |
* Consumer Cyclical Sector Average
Performance Comparison
ABNB
Airbnb
130.46
13.15
11.21%
TCOM
Trip.com Group Sponsored ADR
75.03
28.10
59.88%
EXPE
Expedia
214.71
76.50
55.35%
MMYT
Makemytrip
100.45
4.28
4.45%
BKNG
Booking Holdings
5,651.99
1,772.91
45.70%
TRIP
TripAdvisor
17.04
2.53
17.44%
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.