ABNB - Airbnb: Laying The Groundwork To Go 'Multi-Vertical'

2024-05-17 18:01:46 ET

Summary

• Airbnb beats Q1 revenue and EPS estimates, yet falls post-earnings due to a softer growth outlook.
• The company's quality of business and management remain and provide solid footing to expand the business 'beyond the core'.
• Near-term headwinds and an expensive valuation make it a current hold.

A Look at Q1

In my last article on Airbnb, Inc. (ABNB), I argued Airbnb was a Buy ahead of earnings thanks to continued growth and operating leverage ahead of its Q4 results. Not much has changed in terms of the fundamental narrative of the company expect for moderating topline growth on the horizon. Airbnb beat analyst revenue and EPS estimates in Q1, yet the stock has tumbled 8% since reporting due to a softer Q2 growth outlook than expected. Let's see if the market's reaction is warranted by taking a deeper look at the company's results....

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