Skip to Content

Airbnb Inc Ordinary Shares - Class A ABNB

Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Airbnb Continues to See Industry-Leading Demand, With Robust Profit Improvement; Shares Not Cheap

Dan Wasiolek Senior Equity Analyst

Analyst Note

| Dan Wasiolek |

Narrow-moat Airbnb saw stout second-quarter demand and profit improvement, aided by continued strength in the U.S., flexible working, and a broadening of travel to regions like Europe. Specifically, bookings reached 137% of 2019’s level, up from 104% in the prior quarter. Bookings were driven by rates that were 138% of the prepandemic level, with room nights reaching 99% of 2019’s level. Rates have been pushed higher by a travel mix of U.S. and larger home bookings. This driver should moderate as travel broadens out to other regions like Europe and if traveler flexibility is reduced by return to work. Looking at the rest of 2021, Airbnb commented it was starting to see some increased cancellation rates and slowdowns in booking volume due to pent-up demand already realized and the Delta variant. But we expect demand to remain buoyant. This view is supported by the resilience of U.S. travel demand during the case spikes around the July Fourth, Labor Day, and Thanksgiving holidays in 2020, as well as U.S. hotel and air volumes remaining strong into early August.

Read Full Analysis

Company Profile

Business Description

Started in 2007, Airbnb is the world’s largest online alternative accommodation travel agency, also offering booking services for boutique hotels and experiences. Airbnb’s platform offered 5.6 million active accommodation listings in 2020. Listings from the company’s 4 million hosts are spread over 220 countries and 100,000 cities. In 2020, 53% of revenue was from the North American region, 30% from Europe/Middle East/Africa, 10% from Asia-Pacific, and 7% from Latin America. Transaction fees for online bookings account for all its revenue.

Contact
888 Brannan Street
San Francisco, CA, 94103
T +1 415 510-4027
Sector Communication Services
Industry Internet Content & Information
Most Recent Earnings Jun 30, 2021
Fiscal Year End Dec 31, 2021
Stock Type Distressed
Employees 5,597

Related

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.