ABNB - Airbnb: Temporary Tailwinds

2024-05-27 05:09:24 ET

Summary

• Airbnb's business continues to perform well but tailwinds are fading. While growth should remain solid through 2024, it will likely soften later in the year.
• While Airbnb has introduced Icons, there is still little on the product expansion front that will drive growth in a meaningful way.
• The supply of new housing entering the market could lead to an oversupply in the short-term rental market, potentially pressuring Airbnb's profitability.
• Airbnb is focused on improving the quality of listings on its platform and has removed low-quality listings in support of this.

Airbnb's ( ABNB ) business has continued to perform well in recent quarters, even as economic conditions have normalized, creating a less favorable demand environment. While Airbnb has given soft guidance for the second quarter, I expect the company to continue to perform well in 2024, aided by a number of non-recurring events (solar eclipse, Olympics, etc.)....

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