Airbnb stock market debut 2020: Analysis of the quarterly report and outlook for the growth of the share

Airbnb stock market debut 2020: Analysis of the quarterly report and outlook for the growth of the share

According to a report from stock3.com, Airbnb had a successful stock market debut in late 2020, but its stock price has been declining since then. The reason for this is the company's mixed outlook for the fourth quarter.

In the third quarter, Airbnb increased its revenue by 18% to $3.4 billion compared to the same quarter last year, while analysts had only expected revenue of $3.37 billion. Earnings per share increased to $4.37 billion, or $6.63 per share, due to a one-time tax benefit. Adjusted for this effect, profit was USD 1.61 billion, higher than the previous year's value of USD 1.21 billion.

However, the outlook for the fourth quarter disappoints the market. Revenue is only forecast to be in the range of $2.13 billion to $2.17 billion, compared to expectations of $2.18 billion. CEO Brian Chesky commented on this, citing the uncertain market situation with increased volatility and geopolitical conflicts that could impact travel demand.

This fourth quarter forecast and the expected flattening of growth in the coming years make Airbnb appear less attractive as an investment. Analysts expect a slowdown in sales and profit rates of 10 to 15%.

Airbnb stock's valuation remains elevated while growth rates are expected to decline. From this analysis, it can be concluded that Airbnb is not a favorite for investors in the US.

Source: According to a report by stock3.com