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Airbnb (ABNB)
NASDAQ:ABNB
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Airbnb
(NASDAQ:ABNB)
Rating:75Outperform
Price Target:
$150.00
▲(10.82%Upside)
Positive Factors
Foreign Exchange
Foreign exchange tailwinds are expected to contribute positively to Airbnb's bookings growth.
Growth Opportunities
Higher returns are expected from focusing on growth opportunities in Airbnb's core lodging business.
Negative Factors
Market Competition
There is concern that Booking is positioned to lead the activities narrative due to its more mass-market offering and larger customer base compared to Airbnb.
Regulatory Challenges
Regulatory developments in Spain could pressure Airbnb's growth by removing more than 65,000 listings that violated licensing rules.
Airbnb (ABNB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$84.78B
Dividend YieldN/A
Average Volume (3M)4.52M
Price to Earnings (P/E)34.1
Beta (1Y)1.34
Revenue Growth9.68%
EPS Growth-47.83%
CountryUS
Employees7,300
SectorConsumer Cyclical
Sector Strength66
IndustryTravel Services
Share Statistics
EPS (TTM)0.24
Shares Outstanding431,602,200
10 Day Avg. Volume3,194,624
30 Day Avg. Volume4,520,576
Financial Highlights & Ratios
PEG Ratio-0.05
Price to Book (P/B)9.80
Price to Sales (P/S)0.00
P/FCF Ratio16.00
Enterprise Value/Market Cap0.58
Enterprise Value/Revenue1.13
Enterprise Value/Gross Profit5.30
Enterprise Value/Ebitda5.56
Forecast
1Y Price Target
$136.17Price Target Upside0.61% Upside
Rating ConsensusHold
Number of Analyst Covering30
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:May 01, 2025
(Q1-2025)
| % Change Since: 9.14%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted Airbnb's strong global growth and financial performance, particularly in international markets. However, challenges in the US market and inbound travel to the US, along with expectations for moderated growth, indicate some areas of concern. The company remains optimistic about long-term growth and product expansions.Q1-2025 Updates
Positive Updates
Strong Start to 2025
Guests on Airbnb spent nearly $25 billion in Q1 2025, indicating robust demand despite global uncertainties.
Significant Booking Growth
143 million nights and experiences booked, up 8% year-over-year.
Revenue Increase
Revenue for Q1 was $2.3 billion, up 6% year-over-year. Excluding FX and calendar factors, revenue would have grown 11%.
Cash Flow and Stock Repurchase
Generated $1.8 billion of free cash flow in Q1. Repurchased $807 million of common stock with $2.5 billion remaining on repurchase authorization.
Expanding International Markets
Latin America and Asia Pacific saw significant growth, with Latin America growing in the low-20%s and Asia Pacific in the mid-teens.
Negative Updates
US Market Softness
US domestic travel showed softer trends, with economic uncertainty affecting long-term booking lead times.
Inbound Travel Decline
Decrease in foreign travelers to the US, impacting overall travel demand in the region.
Moderating Growth Expectations
Anticipated moderation in year-over-year growth for Q2 in nights and experiences booked.
Profitability Challenges
Adjusted EBITDA margin expected to be flat to slightly down in Q2 compared to the previous year.
Company Guidance
In the first quarter of 2025, Airbnb reported robust financial results, with guests spending nearly $25 billion on the platform. The company recorded 143 million nights and experiences booked, marking an 8% year-over-year increase. Latin America led regional growth with a low-20% rise, followed by Asia Pacific, Europe, and North America. Revenue reached $2.3 billion, up 6% from the previous year, and adjusted EBITDA was $417 million, representing an 18% margin. Free cash flow for the quarter was significant at $1.8 billion, contributing to a trailing 12-month figure of $4.4 billion and a 39% free cash flow margin. With $11.5 billion in corporate cash and investments, Airbnb repurchased $807 million of common stock and maintains a $2.5 billion authorization for further repurchases. Looking ahead to Q2, the company expects revenue between $2.99 billion and $3.05 billion, indicating a 9% to 11% growth, with an anticipated adjusted EBITDA margin at least 34.5% for the full year. Despite global economic volatility, Airbnb remains optimistic, supported by its adaptable business model and strategic investments in growth initiatives.Airbnb Financial Statement Overview
Summary
Airbnb demonstrates strong financial health with solid growth, profitability, and efficient cash flow management. The company has a robust balance sheet, consistent revenue growth, and significant profitability margins. However, there is potential 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 | 11.23B | 11.10B | 9.92B | 8.40B | 5.99B | 3.38B |
| Gross Profit | 9.33B | 9.22B | 8.21B | 6.90B | 4.84B | 2.50B |
| EBITDA | 2.57B | 2.62B | 2.23B | 2.10B | -64.36M | -4.38B |
| Net Income | 2.54B | 2.65B | 4.79B | 1.89B | -352.00M | -4.58B |
Balance Sheet | ||||||
| Total Assets | 25.06B | 20.96B | 20.64B | 16.04B | 13.71B | 10.49B |
| Cash, Cash Equivalents and Short-Term Investments | 11.49B | 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 | 17.12B | 12.55B | 12.48B | 10.48B | 8.93B | 7.59B |
| Stockholders Equity | 7.94B | 8.41B | 8.16B | 5.56B | 4.78B | 2.90B |
Cash Flow | ||||||
| Free Cash Flow | 4.38B | 4.52B | 3.88B | 3.40B | 2.16B | -667.10M |
| Operating Cash Flow | 4.38B | 4.52B | 3.88B | 3.43B | 2.19B | -629.73M |
| Investing Cash Flow | -683.00M | -616.00M | -1.04B | -28.00M | -1.35B | 79.59M |
| Financing Cash Flow | -3.56B | -3.57B | -2.43B | -689.00M | 1.43B | 2.94B |
Airbnb Technical Analysis
Positive
135.35
Price Trends
132.53
Positive
129.80
Positive
131.89
Positive
Market Momentum
1.16
Negative
52.90
Neutral
70.49
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 135.35 is above the 20-day moving average (MA) of 134.61, above the 50-day MA of 132.53, and above the 200-day MA of 131.89, indicating a bullish trend. The MACD of 1.16 indicates Negative momentum. The RSI at 52.90 is Neutral, neither overbought nor oversold. The STOCH value of 70.49 is Neutral, 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 (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $186.04B | 35.57 | -146.32% | 0.67% | 9.47% | 20.70% | |
75 Outperform | $23.34B | 21.64 | 119.16% | 0.87% | 5.57% | 61.19% | |
75 Outperform | $84.78B | 34.06 | 32.06% | ― | 9.68% | -47.83% | |
73 Outperform | $41.01B | 18.10 | 12.49% | 0.45% | 16.23% | 56.05% | |
68 Neutral | $8.65B | 107.65 | 8.45% | ― | 25.02% | -56.66% | |
68 Neutral | $2.36B | 49.37 | 5.91% | ― | 1.43% | 121.44% | |
63 Neutral | $16.85B | 11.25 | -7.01% | 2.93% | 1.72% | -24.85% |
* Consumer Cyclical Sector Average
Performance Comparison
ABNB
Airbnb
135.35
-11.87
-8.06%
TCOM
Trip.com Group Sponsored ADR
61.92
14.35
30.17%
EXPE
Expedia
183.64
51.71
39.20%
MMYT
Makemytrip
90.86
-0.38
-0.42%
BKNG
Booking Holdings
5,717.10
1,660.63
40.94%
TRIP
TripAdvisor
18.00
-0.01
-0.06%
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.