Airbnb ABNB shares have jumped 12% in the past week following impressive fourth-quarter 2024 results, driven by strong 12% year-over-year growth in Nights & Experiences Booked, which hit 111 million. Solid performances across all regions, especially in Asia Pacific and Latin America, drove Nights & Experiences Booked.
Airbnb app continues to gain traction, with nights booked on the app increasing 22% year over year and accounting for 60% of total nights booked, up from 55% in the year-ago quarter. ABNB saw notable acceleration in the number of first-time bookers on its platform, with Asia Pacific and Latin America, driving growth.
ABNB’s Gross Booking Value increased 13% year over year (or 15% year over year excluding forex) to $17.6 billion, driven by Nights & Experiences Booked and a 1% (or 2% excluding forex) increase in Average Daily Rates.
Airbnb is riding on its strong core business, strategic investments and expanding global footprint. Solid momentum in its marketplace, which connects hosts and guests online, and strong listings on its platform are helping ABNB grow in urban and non-urban areas. It is worth mentioning that Airbnb has more than 8 million listings on its platform and over 5 million hosts around the world.
ABNB Stock’s Performance
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The stock is currently trading above the 50-day and 200-day moving averages, indicating a bullish trend.
ABNB Stock Trades Above the 50-Day and 200-Day SMA
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ABNB Offers Positive 2025 Guidance
For 2025, Airbnb expects to deliver an adjusted EBITDA margin of at least 34.5%, including investments worth $200 to $250 million on new businesses set to be introduced later this year. These new businesses are expected to contribute significantly to revenue growth over the long haul.
The Zacks Consensus Estimate for ABNB’s 2025 revenues is pegged at $12.17 billion, indicating growth of 9.6% over 2024. The consensus mark for ABNB’s 2025 earnings is currently pegged at $4.29 per share, up a couple of cents over the past seven days, indicating year-over-year growth of 4.38%.
For the first quarter of 2025, Airbnb expects revenues between $2.23 billion and $2.27 billion, indicating 4-6% year-over-year growth or 7% to 9% excluding forex impact. The company expects year-over-year growth of Nights and Experiences Booked in the current quarter to be relatively stable compared with the year-ago quarter.
The Zacks Consensus Estimate for ABNB’s first-quarter 2025 revenues is pegged at $2.26 billion, indicating year-over-year growth of 5.73%. The consensus mark for ABNB’s first-quarter 2025 earnings is currently pegged at 23 cents per share, down by a penny over the past seven days, indicating a year-over-year decline of 43.9%.
ABNB beat the Zacks Consensus Estimate for earnings in two of the trailing four quarters, missing in the remaining ones, the average surprise being 23.94%.
Airbnb, Inc. Price and Consensus
Airbnb, Inc. Price and Consensus
Airbnb, Inc. price-consensus-chart | Airbnb, Inc. Quote
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
ABNB’s Prospects Rides on Expanding Features
ABNB has introduced 535 plus new features and upgrades to enhance the platform for both hosts and guests. The 2024 Winter Release included more than 50 upgrades aimed at improving guest experiences. These updates offered personalized features such as recommended destinations, suggested search filters and personalized listing highlights, making the app more tailored to individual preferences.
Airbnb is focusing on expanding its presence in markets outside of its core regions, targeting areas that remain under-penetrated. In the fourth quarter of 2024, the average growth rate of gross nights booked on an origin basis in these expansion markets was more than twice the rate of its core markets, indicating that the strategy is effective and driving strong demand in newer regions.
The launch of Co-Host Network, a program that helps local hosts to manage their Airbnb’s, has been a growth driver. ABNB launched a Co-Host Network in 10 countries and is expanding it to Japan and Korea in the coming months. In the four months since launching, Co-Host Network has grown to support almost 100,000 listings, which earn roughly twice as much as Airbnb listings in comparable countries.
Features like enhanced search functionality, better merchandising, flexible payment options, and the launch of local payment methods in roughly 12 countries, including Brazil, Korea and Indonesia are noteworthy developments. Airbnb is set to offer new offerings as part of its May 2025 summer release.
ABNB Stock: Buy, Sell or Hold?
ABNB stock is not so cheap, as its Value Score of F suggests a stretched valuation at this moment.
In terms of the forward 12-month price/earnings, ABNB is trading at a premium of 36.2X, higher than its median of 29.69X and the industry’s 20.63X.
Price/Sales Ratio (F12M)
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ABNB is suffering from challenging macroeconomic conditions and fluctuating travel trends. Airbnb operates in a highly competitive online travel booking market, facing strong rivals such as Booking Holdings BKNG, Expedia EXPE, Trip.com TCOM, MakeMyTrip and various regional agencies.
ABNB also faces stiff competition from online platforms offering experiences like Viator, GetYourGuide, Klook and Traveloka. TripAdvisor, Trivago, Mafengwo and AllTheRooms.com serve as significant competitors, particularly in the listing and meta-search space.
Investments in new features are expected to hurt profitability in the near term. A stretched valuation remains a concern.
ABNB currently carries a Zacks Rank #3 (Hold), suggesting that it may be wise for investors to wait for a favorable entry point to accumulate the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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