Should you buy Airbnb stock? (May 2024)

Published first at https://www.3minutebreakdowns.com Airbnb stock analysis. Ticker: $ABNB Airbnb reported earnings today and the stock dropped 7% taking the company’s market cap to 96 billion dollars. With 11 billion of cash and investments on its balance sheet and 2 billion of long term debt, the enterprise value is 87 billion. Revenue over the last 12 months comes to 10.2 billion with 4.9 billion of net income and 4.2 billion of free cash flow. That means Airbnb stock is valued at just under 20 times earnings and 21 times free cash flow. However, Airbnb’s net income is inflated by a one-off tax benefit in the third quarter of last year. Account for that and net income falls to 2.2 billion, which takes the PE ratio up to 44. All in all, Airbnb delivered a solid first quarter with 18% revenue growth and a 20% increase in free cash flow. Gross booking value on the platform increased 12% while the number of nights and experiences booked increased 10%. The company also bought back $750 million of shares which helps to offset stock based compensation. A new Icons feature allows customers to experience unique stays such as a night at the Ferrari museum or a night in a Pixar Up house. This is a smart feature that should drive word of mouth and further elevate the Airbnb brand. In addition, Airbnb is getting ready for the upcoming olympics and saw a 60% increase in app downloads. Management said this was due to a renewed focus on the app which drives more conversions than the website. #abnbstock #investing #stocks #stockmarket #3mb