While consumer loan liabilities initially plunged following the onset of the new normal, this metric now pings at all-time highs. In fact, the Washington Post recently warned about rising debt and higher fees. A Morgan Stanley analyst downgraded ABNB stock on growth maturation concerns. Airbnb stock was originally listed at a price of $144.71 in Dec 10, 2020. If you had invested in Airbnb stock at $144.71, your return over the last 2 years would have been -35.09%, for an annualized return of -19.43% . News Corp is a global, diversified media and information services company focused on creating and distributing authoritative and engaging content and other products and services. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services.
We’d like to share more about how we work and what drives our day-to-day business. CompareABNB’s historical performanceagainst its industry peers and the overall market. While the market has stabilized in recent weeks, stocks including Airbnb and Palo Alto Networks have fallen into undervalued territory. Essentially, it’s not a great time for large swathes of the consumer base to spend on discretionary services. This also worryingly affirms Nowak’s hesitation toward ABNB stock. Getting down to the details, Nowak noted that while active listings have grown about 12% per year from 2018 to 2022, this rate may slow to 7% annually through 2025 based on the law of large numbers.
Recent stocks from this report have soared up to +178.7% in 3 months – this month’s picks could be even better. Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company’s earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings. AIRBNB INC’s market capitalization of $58,777,512,244 is ahead of 96.43% of US-listed equities. Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes.
Airbnb’s platform offered 6 million active accommodation listings in 2021. Listings from the company’s 4 million hosts are spread over 220 countries and 100,000 cities and towns. In 2021, 54% of revenue was from the North American region, 32% from Europe/Middle East/Africa, 7% from Asia-Pacific, and 7% from Latin America. Transaction fees for online bookings account for all its revenue.
- Airbnb stock was originally listed at a price of $144.71 in Dec 10, 2020.
- Over the last year, the company has reported $3.3 billion in free cash flow on $8 billion in revenue, or a free-cash-flow margin of 41%.
- For context, these numbers suggest year-over-year growth of between 62% to 70% relative to Q as well.
- Money Flow Uptick/Downtick RatioMoney flow measures the relative buying and selling pressure on a stock, based on the value of trades made on an "uptick" in price and the value of trades made on a "downtick" in price.
- Getting down to the details, Nowak noted that while active listings have grown about 12% per year from 2018 to 2022, this rate may slow to 7% annually through 2025 based on the law of large numbers.
To better understand why Airbnb’s Q3 results were impressive, let me provide some context. Firstly, Q3 makes for a significant quarter as it’s the high season of the tourism industry ; hence it’s worth using it as a benchmark for Airbnb’s performance. Our experts picked 7 Zacks Rank #1 Strong Buy stocks with the best chance to skyrocket within the next days. Compared to the Zacks Consensus Estimate of $2.86 billion, the reported revenues represent a surprise of +1.03%. All investments involve the risk of loss and the past performance of a security or a financial product does not guarantee future results or returns. What analysts recommend for ABNB stock, on a scale from 1 to 5. Information is provided ‘as-is’ and solely for informational purposes, not for trading purposes or advice, and is delayed.
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In short, he thinks the business is maturing, and that growth slows from here. Now, as you remember, the what is an ABNB COVID-19 pandemic adversely impacted the travel industry, including booking websites like Airbnb.
Users don’t create content; they create experiences, and they’re directly incentivized to do so. Turning to Wall Street, Airbnb has a Moderate Buy consensus rating based on 13 Buys, 11 Holds, and one Sell assigned in the past three months. At $130.55, the average Airbnb stock forecast implies 32% upside potential. Airbnb is not only delivering exciting growth on top of last year’s record results, but it has also developed into a highly-profitable business. With strong catalysts to support its expansion and the stock trading at inexpensive levels relative to the company’s future prospects, Airbnb’s investment case appears quite enticing. You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security.
The Company’s Website and mobile applications provide its guests with an engaging way to explore a variety of homes and experiences and an easy way to book them. Airbnb, Inc, together with its subsidiaries, operates a platform that enables hosts to offer stays and experiences to guests worldwide. Specifically, Morgan Stanley analyst Brian Nowak just offered a perspective that contrasts sharply against current consensus earnings estimates. Per Barron’s, the analyst believes Airbnb has reached a maturation phase. Subsequently, growth may slow from here, potentially putting an end to Airbnb’s otherwise remarkable performance given the pandemic backdrop. It has since pared back losses to around 3% as of this writing.
The stock is well-priced
ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating indiv idual securities. The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period. Even though a company’s earnings growth is arguably the best indicator of https://www.thetigernews.com/buy-abnb-stocks-with-dotbig-forex-broker/ its financial health, nothing much happens if it cannot raise its revenues. It’s almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company’s potential revenue growth is crucial. For the current quarter, Airbnb, Inc. is expected to post earnings of $0.30 per share, indicating a change of +275% from the year-ago quarter.
The Zacks Consensus Estimate remained unchanged over the last 30 days. Discuss news and analysts’ price predictions with the investor community. We believe this network advantage will be supported by continued expansion into the experiences vertical over the next several years. Further, we expect some durability in remote working to enhance long-term travel demand. To boot, Nowak cut his rating on Airbnb to “underweight” from “equal weight.” Further, the analyst sliced his price target to $80 from $110.
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Also, note that net margins include stock-based compensation expenses. Airbnb, Inc. reported revenues of $2.88 billion in the last reported quarter, representing a year-over-year change of +28.9%. EPS of $1.79 for the same period compares with $1.22 a year ago. Stocks https://www.stgusa.com/ with similar financial metrics, market capitalization, and price volatility to AIRBNB INC are ATVI, ADSK, SHOP, PYPL, and ISRG. A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies.
Is this a fair multiple two years out in the current environment? Considering Airbnb’s momentum, lean business model, exciting growth drivers, anddeveloping traction, I believe that the stock could be modestly undervalued as well. 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.
Keep in mind that other fees such as regulatory fees, Premium subscription fees, commissions on trades during extended trading hours, wire transfer fees, and paper statement fees may apply to your brokerage account. Please see Open to the Public Investing’s Fee Schedule to learn more. Airbnb’s market cap is calculated by multiplying ABNB’s current stock price of $93.93 by ABNB’s total outstanding shares of 642,377,183. Besides its outstanding business model, Airbnb also doesn’t need to spend much on capital expenditures for things like data centers and other infrastructure that can require sizable investments at some tech companies. Through the first three quarters of 2023, it spent just $16.6 million on capex. That shows its business is highly scalable, and it shouldn’t have a problem ramping up with demand.