Airbnb Inc (ABNB, Financial), the world's largest online alternative accommodation travel agency, has seen a significant surge in its stock price over the past three months. With a current market cap of $83.85 billion and a stock price of $131.41, the company's stock has seen a gain of 1.44% over the past week and a substantial increase of 20.69% over the past three months. This rise is particularly noteworthy when compared to the company's stock price three months ago, which stood at $121.42.
When compared to the GF Value of $228.31, Airbnb's current stock price appears significantly undervalued. The GF Value, defined by GuruFocus.com, calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates. Unfortunately, there is no data available for the GF Value three months ago.
Airbnb Inc: A Global Leader in the Travel & Leisure Industry
Founded in 2008, Airbnb has grown to become the world's largest online alternative accommodation travel agency. The company also offers booking services for boutique hotels and experiences. As of June 30, 2023, Airbnb's platform boasted around 7 million active accommodation listings, offered by over 4 million hosts spread across almost every country in the world. In the fourth quarter of 2022, 47% of the company's revenue came from the North American region. Airbnb generates all its revenue from transaction fees for online bookings.
Profitability Analysis: Airbnb Outperforms Industry Peers
Airbnb's Profitability Rank stands at 5/10, indicating a moderate level of profitability. The company's operating margin of 21.53% is better than 84.57% of the 823 companies in the same industry. This ratio, calculated as Operating Income divided by its Revenue, can be found here.
The company's ROE (43.08%), ROA (12.45%), and ROIC (42.81%) are all impressive, outperforming a significant majority of companies in the industry. However, Airbnb has only been profitable for one year over the past decade, which is better than 6.68% of the 778 companies in the same industry.
Growth Prospects: Airbnb Shows Promising Trends
Airbnb's Growth Rank is 6/10, indicating a moderate growth trajectory. The company's 3-year and 5-year revenue growth rates per share are 10.90% and 18.40% respectively, outperforming a significant majority of companies in the industry. The company's projected total revenue growth rate and EPS growth rate for the next 3 to 5 years are 14.04% and 20.75% respectively, again outperforming a majority of companies in the industry.
Top Holders of Airbnb's Stock
Jim Simons (Trades, Portfolio) is the top holder of Airbnb's stock, holding 5,294,527 shares, which accounts for 0.83% of the total shares. Frank Sands (Trades, Portfolio) holds the second-largest number of shares (2,842,641), accounting for 0.45% of the total shares. The third-largest holder is the Harbor Capital Appreciation Fund (Trades, Portfolio), holding 1,717,557 shares, which accounts for 0.27% of the total shares.
Competitive Landscape: Airbnb vs. Industry Giants
Airbnb faces stiff competition from other giants in the travel and leisure industry. Booking Holdings Inc (BKNG, Financial) has a market cap of $110.52 billion, significantly higher than Airbnb's. Expedia Group Inc (EXPE, Financial) and Carnival Corp (CCL, Financial) have market caps of $15.69 billion and $20.9 billion respectively, both lower than Airbnb's.
Conclusion: Airbnb's Stock Shows Promising Potential
In conclusion, Airbnb's stock performance, profitability, growth, and competitive position all indicate a promising future for the company. Despite facing stiff competition in the industry, Airbnb has managed to carve out a significant market share and continues to grow. The company's stock appears significantly undervalued according to the GF Value, suggesting potential investment value. However, investors should conduct thorough research and consider all relevant factors before making investment decisions.
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