2024-02-12 09:14:19 ET
Summary
- Airbnb is expected to report strong growth in revenue and earnings for Q4 2023, with a 14% YoY increase in revenue.
- Key data points to watch include bookings growth compared to Q4 2022, trends in average length of stay, and average daily rates.
- As I discuss in this article, each of these data points helps us determine what's in store for Airbnb this year.
- A macroeconomic analysis of the travel sector suggests the comeback of Asia will be the key determinant of Airbnb's growth in 2024. Investors need to evaluate how Airbnb is positioning itself for success in this challenging market.
- I am not bearish on the prospects for Airbnb - I remain long - but a downgrade seems a rational move given my expectations for Airbnb's financial performance this year.
Last November, after analyzing deal activity in the leisure sector, tensions in the Middle East, and the continued impact of inflation, I warned investors that Airbnb, Inc. ( ABNB ) may have reached a short-term peak in demand. This, however, did not stop me from maintaining my buy rating for Airbnb as I thought the company was cheaply valued given the long runway for growth enjoyed by the company and its potential for market share gains. ABNB stock has gained just over 20% since then....
Read the full article on Seeking Alpha
For further details see:
Airbnb Earnings Preview: Downgrading Ahead Of The Q4 Report