Key Stats for Airbnb Stock
- Price Change for Airbnb stock: 5.5%
- $ABNB Share Price as of Nov. 6: $121
- 52-Week High: $164
- $ABNB Stock Price Target: $138
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What Happened?
Airbnb (ABNB) stock is up over 5% in early-market trading after the company beat Wall Street’s expectations for the third quarter. Revenue came in at $4.1 billion, slightly topping the $4.08 billion analysts expected.
More importantly, the company’s outlook for the fourth quarter impressed investors, with revenue guidance ranging from $2.66 billion to $2.72 billion.
The company reported adjusted EBITDA of $2.1 billion, marking its highest quarterly profit ever. Gross booking value surged 14% to $22.9 billion, while nights and experiences booked climbed 9% to 133.6 million.
Both figures exceeded analyst estimates, primarily driven by the strength of the U.S. market and higher average daily rates.
CEO Brian Chesky highlighted four key growth drivers during the earnings call: enhancing the core service, expanding internationally, introducing new offerings such as hotels and experiences, and integrating AI across the platform.
The company rolled out 65 major improvements since May, including a “reserve now, pay later” payment option that’s already boosting bookings in the U.S.
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What the Market Is Telling Us About Airbnb Stock
The positive reaction to Airbnb stock suggests that investors are encouraged by the company’s ability to maintain strong growth while expanding margins.
The 50% EBITDA margin and record profitability demonstrate that the business model is working efficiently, even as the company invests in new initiatives.
Airbnb’s expansion into hotels and experiences represents a significant strategic shift, as the hotel pilot in major cities like New York and Los Angeles fills supply gaps in constrained markets.
Meanwhile, the experiences business is bringing new users to the platform, with nearly half of experience bookers having never had an Airbnb stay.
Notably, management is rolling out AI-powered search and customer service tools that could fundamentally change how people discover and book travel.
With 90% of traffic coming directly to Airbnb rather than through paid channels, the company has room to optimize conversion through better personalization.
Looking ahead, Airbnb stock appears positioned for continued growth. The company believes its core homes business is not yet mature, noting that for every person who stays in an Airbnb, nine people still choose hotels.
Management sees a path to reaccelerating growth as they improve quality, affordability, and supply in key markets.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
