Long-established in the Travel & Leisure industry, Airbnb Inc (ABNB, Financial) has enjoyed a stellar reputation. However, it has recently witnessed a daily loss of 2.24%, juxtaposed with a three-month change of -5.85%. Fresh insights from the GF Score hint at potential headwinds. Notably, its diminished rankings in financial strength, growth, and valuation suggest that the company might not live up to its historical performance. Join us as we dive deep into these pivotal metrics to unravel the evolving narrative of Airbnb Inc.
Understanding the GF Score
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
- Financial strength rank: 7/10
- Profitability rank: 5/10
- Growth rank: 5/10
- GF Value rank: 8/10
- Momentum rank: 0/10
Based on the above method, GuruFocus assigned Airbnb Inc the GF Score of 59 out of 100, which signals poor future outperformance potential.
Airbnb Inc Business Overview
Founded in 2008, Airbnb Inc is the world's largest online alternative accommodation travel agency, also offering booking services for boutique hotels and experiences. With a market cap of $78.83 billion and sales of $9.09 billion, Airbnb's platform offered around 7 million active accommodation listings as of June 30, 2023. Listings from the company's over 4 million hosts are spread over almost every country in the world. In the fourth quarter of 2022, 47% of revenue was from the North American region. Transaction fees for online bookings account for all its revenue.
Profitability Breakdown
Airbnb Inc's low Profitability rank can also raise warning signals. With an operating margin of 21.53%, the company's profitability is a critical factor to consider in its overall performance.
Conclusion
Considering the company's financial strength, profitability, and growth metrics, the GF Score highlights the firm's unparalleled position for potential underperformance. While Airbnb Inc has been a dominant player in the Travel & Leisure industry, its current financial metrics suggest that it may struggle to maintain its historical performance. Therefore, investors should exercise caution and conduct thorough research before making investment decisions.
GuruFocus Premium members can find more companies with strong GF Scores using the following screener link: GF Score Screen
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
