Airbnb (ABNB) AI Stock Analysis

• Market Cap: $70.44B
• Dividend Yield: N/A
• Average Volume (3M): 4.87M
• Price to Earnings (P/E): 27.1
• 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): 2.21
• Shares Outstanding: 425,294,130
• 10 Day Avg. Volume: 6,038,023
• 30 Day Avg. Volume: 4,868,782
• PEG Ratio: -0.71
• Price to Book (P/B): 9.87
• Price to Sales (P/S): 7.48
• P/FCF Ratio: 18.38
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 5.52
• Enterprise Value/Gross Profit: 6.65
• Enterprise Value/Ebitda: 22.28
• 1Y Price Target: $144.30
• Price Target Upside: 29.37% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 27
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $133.00 ▲(19.24% Upside)

Airbnb's overall stock score reflects strong financial performance and positive earnings call insights, which are partially offset by bearish technical indicators and a high valuation. The company's strategic initiatives and international expansion are promising, but technical analysis suggests caution due to current market momentum.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and profitability.

International Expansion

Successful international expansion enhances market diversification and reduces dependency on core markets, contributing to sustained growth.

AI Integration

AI integration improves operational efficiency and customer experience, potentially lowering costs and increasing user satisfaction long-term.

Negative Factors

Net Profit Margin Pressure

Decreasing net profit margins could indicate rising costs or pricing pressures, potentially affecting long-term profitability if not addressed.

Increased Debt

Rising debt levels can strain financial flexibility and increase risk, impacting the company's ability to invest in growth opportunities.

Cancellation Concerns

High cancellation rates may affect revenue predictability and customer trust, posing a challenge to maintaining stable booking volumes.

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 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 Financial Statement Overview

Summary

Airbnb demonstrates strong financial health with high profitability margins, efficient cash flow management, and a stable balance sheet. The company maintains a low leverage profile and solid revenue growth, positioning it well for future growth. However, a slight decrease in net profit margin and an increase in total debt warrant monitoring.

Income Statement

Airbnb's income statement shows strong profitability with a gross profit margin consistently above 80% and a net profit margin of 22% for TTM. Revenue growth has been steady, with a 3.1% increase in the latest TTM period. The company has maintained healthy EBIT and EBITDA margins, indicating efficient operations. However, the net profit margin has decreased from previous highs, suggesting some pressure on net income.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.23, indicating prudent leverage. Return on equity is strong at 32.1%, showcasing effective use of equity capital. The equity ratio is healthy, suggesting a stable asset base. However, the slight increase in total debt over the years warrants monitoring.

Cash Flow

Airbnb's cash flow statement is robust, with a consistent free cash flow to net income ratio of 1.0, indicating efficient cash generation relative to earnings. The operating cash flow to net income ratio is strong, reflecting good cash conversion. Free cash flow growth is positive at 6.5% for TTM, supporting future investments and debt servicing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.94B	11.10B	9.92B	8.40B	5.99B	3.38B
Gross Profit	9.92B	9.22B	8.21B	6.90B	4.84B	2.50B
EBITDA	2.96B	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	23.06B	20.96B	20.64B	16.04B	13.71B	10.49B
Cash, Cash Equivalents and Short-Term Investments	11.68B	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	14.45B	12.55B	12.48B	10.48B	8.93B	7.59B
Stockholders Equity	8.61B	8.41B	8.16B	5.56B	4.78B	2.90B
Cash Flow
Free Cash Flow	4.56B	4.52B	3.88B	3.40B	2.31B	-667.10M
Operating Cash Flow	4.59B	4.52B	3.88B	3.43B	2.31B	-629.73M
Investing Cash Flow	-668.00M	-616.00M	-1.04B	-28.00M	-1.35B	79.59M
Financing Cash Flow	-3.71B	-3.57B	-2.43B	-689.00M	1.31B	2.94B

Airbnb Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 111.54
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ABNB, the sentiment is Negative. The current price of 111.54 is below the 20-day moving average (MA) of 122.21, below the 50-day MA of 122.68, and below the 200-day MA of 128.41, indicating a bearish trend. The MACD of -2.50 indicates Positive momentum. The RSI at 25.34 is Positive, neither overbought nor oversold. The STOCH value of 3.06 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ABNB.

Airbnb Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EXPE	81 Outperform	$29.40B	22.96	104.40%	0.68%	7.29%	36.51%
ABNB	71 Outperform	$70.44B	27.08	30.78%	―	10.56%	47.16%
TCOM	71 Outperform	$48.64B	11.63	19.96%	0.40%	17.34%	91.51%
TRIP	67 Neutral	$1.70B	21.08	9.57%	―	4.24%	159.81%
MMYT	65 Neutral	$7.00B	109.52	16.66%	―	14.55%	-68.46%
BKNG	63 Neutral	$151.20B	31.09	―	0.74%	12.96%	3.66%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Airbnb Corporate Events

Airbnb’s Q3 Earnings: Record Growth Amid Challenges

Airbnb’s recent earnings call revealed a robust performance in the third quarter, marked by record revenue growth and significant international expansion. The sentiment during the call was largely positive, driven by impressive financial metrics and strategic initiatives. However, some concerns were raised regarding increased cancellations linked to the ‘Reserve Now, Pay Later’ program and a notable tax-related impact on net income.

Airbnb Reports Revenue Growth and Strategic Investments

Airbnb, Inc. is a global platform that connects hosts and guests to book accommodations, experiences, and services worldwide, operating primarily in the travel and hospitality sector. In its latest earnings report for the quarter ending September 30, 2025, Airbnb reported a revenue increase to $4.095 billion, marking a growth from the previous year’s $3.732 billion. The company’s net income for the quarter was $1.374 billion, slightly up from $1.368 billion in the same period last year. Key financial highlights include a rise in cash and cash equivalents to $7.528 billion and an increase in total assets to $23.064 billion. Airbnb also reported a significant increase in its current liabilities, primarily due to the current portion of long-term debt. The company continues to invest in technology and marketing to enhance its platform and expand its global reach. Looking forward, Airbnb remains focused on its strategic initiatives, including global expansion and technological advancements, as it navigates the evolving travel industry landscape.

Airbnb’s Earnings Call: Strong Growth Amid Challenges

Airbnb’s recent earnings call painted a picture of robust financial health and strategic growth, tempered by certain challenges. The sentiment was largely positive, with strong financial performance and global market expansion being key highlights. However, concerns were raised regarding growth pressures and high investment costs.