BKNG - Airbnb: Slowing Growth Expensive Valuation Are Warning Signs (Downgrade)
2024-03-18 16:00:00 ET
Summary
- Airbnb stock has outperformed the S&P 500 since my December update, as it reached an inflection point.
- Airbnb plans to expand into underpenetrated markets to rejuvenate its growth momentum.
- Airbnb's growth is expected to slow, and it may need to invest more aggressively in newer markets.
- ABNB is a fundamentally strong company, but questions must be asked about its highly expensive valuation.
- I argue why investors must not ignore the signs of slowing growth momentum, threatening its growth premium.
Airbnb Stock Outperformed the S&P 500
Investors in leading vacation rental company Airbnb, Inc. ( ABNB ) have performed relatively well since my previous update in December. I highlighted that ABNB reached an inflection point, supported by robust buying sentiments. As a result, my timely upgrade has played out, as ABNB outperformed the S&P 500 ( SP500 ) since then, notwithstanding its recent pullback....
Airbnb: Slowing Growth, Expensive Valuation Are Warning Signs (Downgrade)