![]() ![]() Specifically, Airbnb began offering dedicated support to "Superhosts" - the top-rated, most experienced ones - with hopes of resolving guest-related issues faster. Management is well aware of this challenge and is taking measures to grow its number of hosts. And since becoming public in late 2020, Airbnb has faced that exact problem, with its total hosts stuck at 4 million. If the company cannot grow its host count, its revenue growth may be limited, as there are only so many locations where guests can stay. What could go wrong?Īirbnb, a de facto broker between guests and hosts, will likely always be reliant on its hosts to provide desirable accommodations for its guests. Since its launch, "I'm Flexible" has been utilized nearly 800 million times by users. With that flexibility, Airbnb can continue investing heavily in product development - it has spent more than $4 billion over the past two years - to innovate with such product features as "'I'm Flexible," a way for guests who are flexible about where and when they're traveling to search for stays and experiences at lower prices. So while Airbnb's stock price is trading close to where it began trading at its IPO, its total sales increased 77% from 2020 to 2021.Īdditionally, Airbnb has an outstanding balance sheet with over $6 billion in net cash, meaning it likely won't have to take out unfavorable loans in the higher interest rate market conditions of present. Recently, Airbnb traded at a P/S ratio of about 16, close to an all-time low for the company since it went public in late 2020. To value a growth stock like Airbnb, investors typically look to its price-to-sales (P/S) ratio - a company's market capitalization divided by its total sales over the past 12 months - since it doesn't have positive earnings yet. Airbnb stock looks cheaper than everĪirbnb stock is down about 28% from its 52-week highs and off 11% year to date. ![]() Additionally, Airbnb has posted four consecutive quarters of free cash flow - the cash which remains after all capital expenditures - despite lower, overall travel than before the pandemic. The company produced roughly $1.5 billion in revenue and $55 million in net income, up 38% and 115% from Q4 2019, respectively. The paradigm shift showed up in Airbnb's fourth-quarter 2021 results, which were its best ever in terms of revenue and net income. ![]()
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