Airbnb Shares Jump 12% in a Week: Buy, Sell or Hold the Stock?

Core Insights - Airbnb (ABNB) shares increased by 12% in the past week following strong fourth-quarter 2024 results, with a 12% year-over-year growth in Nights & Experiences Booked, totaling 111 million [1] - The Airbnb app saw a 22% year-over-year increase in nights booked, now accounting for 60% of total nights booked, up from 55% in the previous year [2] - Gross Booking Value rose by 13% year-over-year to $17.6 billion, driven by increased bookings and a slight rise in Average Daily Rates [3] Business Performance - Airbnb's core business is thriving, supported by strategic investments and a growing global presence, with over 8 million listings and more than 5 million hosts [4] - The company expects an adjusted EBITDA margin of at least 34.5$200 to $250 million in new business initiatives [9] - The Zacks Consensus Estimate for 2025 revenues is$12.17 billion, reflecting a 9.6% growth over 2024, with earnings expected to be $4.29 per share, a 4.38$2.23 billion and $2.27 billion, indicating a 4-6$2.26 billion, suggesting a 5.73% year-over-year growth, while earnings are projected at 23 cents per share, down 43.9% year-over-year [12] Product Development - Airbnb has introduced over 535 new features and upgrades to enhance user experience, including personalized recommendations and improved search functionalities [14] - The company is expanding its presence in under-penetrated markets, with gross nights booked in these areas growing at more than double the rate of core markets [15] - The Co-Host Network program, launched in 10 countries, has supported nearly 100,000 listings, generating significantly higher earnings compared to standard listings [17] Competitive Landscape - Airbnb operates in a highly competitive online travel booking market, facing strong competition from companies like Booking Holdings, Expedia, and various regional agencies [22] - The company also competes with platforms offering experiences, such as Viator and GetYourGuide, as well as meta-search engines like TripAdvisor and Trivago [23]