#2 - Airbnb (NASDAQ:ABNB)
Since going public late in 2020, Airbnb Inc. (NASDAQ: ABNB) hasn’t been a consistently solid investment. In fact, in the five years since ABNB stock has been trading publicly, the total return is negative 1.29%. And in the last three years, that negative return has been even more pronounced at negative 17.5%.
However, after confirming a level of support around $111 in September, ABNB stock has an attractive setup for investors. One of the first things investors should look at with Airbnb is its 24% compound annual growth rate since 2017, which now has about 40% of the company’s revenue realized as free cash flow (FCF).
Another bullish consideration is the company’s business model, which includes a reverse cash conversion cycle. This means that while you pay Airbnb at the time you book your stay, the host doesn’t get paid until your stay is complete. In the meantime, Airbnb can invest that capital and get a healthy return.
Airbnb is aggressively planning to expand into other markets, such as experiential travel, rental cars, and tour packages. That’s reason to believe the analysts who are forecasting low double-digit earnings growth in 2025.
About Airbnb
Airbnb, Inc, together with its subsidiaries, operates a platform that enables hosts to offer stays and experiences to guests worldwide. The company's marketplace connects hosts and guests online or through mobile devices to book spaces and experiences. It primarily offers private rooms, primary homes, and vacation homes.
Read More - Current Price
- $131.29
- Consensus Rating
- Hold
- Ratings Breakdown
- 8 Buy Ratings, 19 Hold Ratings, 6 Sell Ratings.
- Consensus Price Target
- $139.48 (6.2% Upside)
