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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on ABNB

Airbnb's recent performance was driven by strong Q2 earnings, with revenue increasing 13% year-over-year to $3.1 billion, surpassing consensus estimates. The company's EPS of $1.03 also exceeded expectations. Additionally, Airbnb launched a "Reserve Now, Pay Later" feature for US stays, allowing travelers to book without upfront payment. This new product offering aims to enhance customer flexibility and convenience. Furthermore, the company's focus on driving long-term growth and preparing for its next chapter, including offering more than just a place to stay, is underway.

1.c. Company Highlights

2. Airbnb's Q3 2025 Earnings: A Strong Performance

Airbnb's third-quarter 2025 revenue increased 10% year-over-year to $4.1 billion, with adjusted EBITDA of $2.1 billion and a 50% EBITDA margin. The company's earnings per share (EPS) came in at $2.21, slightly below estimates of $2.31. Gross booking value grew 14% to $22.9 billion, driven by strong growth in bookings and price, with nights and seats booked up 9%. The company's financial performance was robust, with a significant acceleration in the U.S. from Q2 to Q3, partly due to the launch of its Reserve now Pay Later payment offering.

Publication Date: Nov -08

📋 Highlights
  • Revenue and Profit Growth:: Q3 revenue rose 10% to $4.1B, with adjusted EBITDA at $2.1B (50% margin) and full-year margin guidance of ~35%.
  • Booking Value Expansion:: Gross booking value (GMV) grew 14% to $22.9B, driven by 9% increase in nights/seats booked and higher pricing.
  • U.S. Acceleration:: U.S. growth accelerated Q2-Q3, boosted by Reserve Now Pay Later, while expansion markets grew at double the core market rate over 12 months.
  • Experiences Segment Potential:: Relaunched experiences saw 50% of bookings from non-stay users and 10% from first-time Airbnb users, projected to become material in 3–5 years.
  • Innovation and AI Investments:: 65 product enhancements, $200M incremental investments in services, and AI-driven initiatives (e.g., search, customer service) to personalize offerings and improve efficiency.

Growth Drivers

The company is driving growth by focusing on four key areas: making its service better, bringing Airbnb to more parts of the world, expanding what it offers, and integrating AI across its app. It has made 65 major improvements to its service, including introducing Reserve now Pay Later in the U.S., improved maps, and an updated cancellation policy. International expansion is a multiyear strategy, with average nights booked in expansion markets growing at double the rate of core markets over the past 12 months.

Outlook and Guidance

Airbnb expects Q4 revenue of $2.66 billion to $2.72 billion, representing year-over-year growth of 7% to 10%, with GMV growth in the low double digits. The company anticipates full-year adjusted EBITDA margin of approximately 35%. Analysts estimate next year's revenue growth at 9.3%, indicating a continued strong performance.

Valuation

Airbnb's current valuation metrics are as follows: P/E Ratio of 28.07, P/B Ratio of 8.58, P/S Ratio of 6.31, EV/EBITDA of 25.36, and ROE of 32.14%. These metrics suggest that the company's strong financial performance is reflected in its valuation, with a premium price for its growth prospects. The EV/EBITDA ratio of 25.36 indicates that the company's enterprise value is approximately 25 times its EBITDA, which may be considered relatively high.

New Initiatives and Innovation

The company is investing in new initiatives, including its experiences and services segment, which has shown promise, with 50% of bookings coming from people who don't have an Airbnb stay associated with the reservation, and 10% from people who have never booked on Airbnb before. Airbnb is also exploring AI-powered search, which is expected to launch imminently, and is testing integrations with third-party platforms, such as chatbots, on a case-by-case basis.

3. NewsRoom

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Why I'm Never Selling Airbnb Stock

Dec -04

Source: fool.com

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How Good Has Airbnb (ABNB) Stock Actually Been?

Dec -03

Source: fool.com

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Why Buying This Dominant Travel Disrupter Today Will Net 200% Returns

Dec -01

Source: fool.com

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First Look: Airbus drops, Crypto slides, Cyber Monday

Dec -01

Source: gurufocus.com

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1 Travel Stock That Should Be on Every Investor's Holiday List

Nov -29

Source: fool.com

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Options Corner: Why Airbnb CEO Brian Chesky's Billionaire Bounce Sets The Stage For A Bullish ABNB Trade

Nov -28

Source: feeds.benzinga.com

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Travel Stocks Gains Focus on Thanksgiving-- Here are Top 5 Names to Watch

Nov -27

Source: gurufocus.com

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Tesla Investor, Airbnb Co-Founder Joe Gebbia Calls Tesla Vehicles Robot On Wheels

Nov -26

Source: feeds.benzinga.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (23.10%)

6. Segments

Internet Information Providers

Expected Growth: 23.1%

Growing demand for unique travel experiences, increasing adoption of online booking platforms, and Airbnb's strong brand recognition drive growth in the online marketplace for lodging and tourism.

7. Detailed Products

Stays

Airbnb's core product, allowing users to book and list unique homes, apartments, villas, and other types of accommodations.

Experiences

Local-led tours and activities that allow guests to immerse themselves in local cultures and experiences.

Luxury Retreats

High-end, luxury vacation rentals, often featuring private chefs, butlers, and other premium amenities.

Airbnb Plus

A selection of high-quality, vetted listings that meet Airbnb's quality and design standards.

HotelTonight

A last-minute hotel booking service, offering same-day bookings at discounted rates.

Airbnb for Work

A platform for business travelers to book and manage work-related stays, with features for expense tracking and company management.

8. Airbnb, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Airbnb's unique platform and user-generated content make it difficult for substitutes to emerge.

Bargaining Power Of Customers

Customers have some bargaining power due to the availability of alternative accommodation options, but Airbnb's strong brand and user base mitigate this power.

Bargaining Power Of Suppliers

Suppliers (hosts) have limited bargaining power due to Airbnb's dominant market position and the ease of finding alternative hosts.

Threat Of New Entrants

While new entrants may emerge, Airbnb's strong brand, network effects, and regulatory hurdles create barriers to entry.

Intensity Of Rivalry

The short-term rental market is highly competitive, with Airbnb facing competition from established players like Booking.com and Expedia, as well as new entrants.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 20.08%
Debt Cost 3.95%
Equity Weight 79.92%
Equity Cost 10.14%
WACC 8.89%
Leverage 25.13%

11. Quality Control: Airbnb, Inc. passed 8 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Travel + Leisure

A-Score: 6.6/10

Value: 8.0

Growth: 4.7

Quality: 6.0

Yield: 7.0

Momentum: 8.0

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Booking

A-Score: 6.3/10

Value: 3.8

Growth: 8.7

Quality: 8.0

Yield: 1.0

Momentum: 7.5

Volatility: 8.7

1-Year Total Return ->

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PulteGroup

A-Score: 5.8/10

Value: 5.9

Growth: 8.8

Quality: 7.6

Yield: 2.0

Momentum: 4.0

Volatility: 6.3

1-Year Total Return ->

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Lennar

A-Score: 5.4/10

Value: 7.5

Growth: 7.2

Quality: 7.1

Yield: 3.0

Momentum: 1.5

Volatility: 6.3

1-Year Total Return ->

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Royal Caribbean Cruises

A-Score: 5.1/10

Value: 2.5

Growth: 6.9

Quality: 6.2

Yield: 1.0

Momentum: 8.5

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
Airbnb

A-Score: 5.0/10

Value: 1.9

Growth: 9.2

Quality: 8.4

Yield: 0.0

Momentum: 4.0

Volatility: 6.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

124.32$

Current Price

124.32$

Potential

-0.00%

Expected Cash-Flows