Based on 26 Wall Street analysts’ 12-month price forecasts for Airbnb in the previous three months. The average price goal is $139.63, with an expected high of $197.00 and a low of $100.00. The average projected price reflects a 20.32% increase over the previous $116.05.
The expected price of an Airbnb stock in November 2022.
The weighted average target price per share for Airbnb in November 2022 is 121.67. Momo shares will have favorable dynamics in November, with monthly volatility of up to 10.127% forecast. A high of 125.55 and a low of 112.83.
The expected price of Airbnb stock in December 2022.
The weighted average target price per share for Airbnb in December 2022 is 119.79. Momo shares will have negative dynamics in December, with monthly volatility of up to 11.215%. A high of 125.72 and a low of 111.62.
Things You Need to Know About the Interest Shown by Investors in Airbnb, Inc. (ABNB)
Recently, Airbnb, Inc. was one of the companies that attracted the most attention on Zacks.com (ABNB). As a result, consider some facts that might affect the stock’s performance in the not-too-distant future.
During the same period, the Zacks Internet – Content sector, which Airbnb, Inc. is a part of, grew by 0.9%. The question of how the stock would behave shortly has become the primary issue.
Even though media reports or conjectures about a significant change in a company’s business prospects frequently cause its stock to trend and prompt an immediate price adjustment, a few fundamental factors always influence the choice of whether to buy and hold or sell immediately sell an investment.
Alterations made to the projected profits
At Zacks, we focus the highest priority on determining how the profits prediction for a firm has shifted from the previous period. That is because, in our perspective, the fair value of a firm’s shares is determined by the present value of the predicted future earnings stream for the company.
Our primary emphasis is on how sell-side analysts who cover the company modify their profit projections to consider the effects of recent corporate changes. A further factor contributing to a rise in the fair value of a company’s shares is an increase in projected levels of profitability. The stock cost increases when the company’s current market price is lower than its reasonable worth because more investors will want to purchase its shares. As a result, the empirical data indicates a significant association between changes in earnings estimate revisions and modifications in stock price over short periods.
It is anticipated that Airbnb, Inc. will create profits of $1.44 per share during the next quarter, representing a rise of 18% compared to last year. The Zacks Consensus Estimate fluctuated by -2.1% last month.
The current financial year is expected to bring in an average of $2.32, representing a +507% increase compared to the prior year’s profits. This estimate has grown by 3.5% during the last month.
The current consensus forecast for Airbnb, Inc.’s annual average profit is $2.84, reflecting a shift of +22.4% compared to what was predicted for the company’s financial performance a year ago. The projection went raised by a factor of +2.7% during the last month.
The Zacks Rank, our in-house developed stock rating methodology, can effectively harness the power of earnings estimate revisions and has an incredible track record of independent verification. It paints a more definitive picture of how prices will likely behave in the short future for a particular firm. Because of the extent of the most recent shift in the consensus estimate and three other variables, Airbnb, Inc. currently has a Zacks Rank #2 (Buy), indicating that investors should purchase the stock.
Earnings growth is the most significant sign of a company’s financial health, but sales growth will only happen if sales growth isn’t. For instance, a business will only be able to improve its profitability by concurrently achieving steadily rising sales levels. Therefore, it is essential to have a solid understanding of the predicted revenue growth of a firm.
Airbnb, Inc. forecasts that it will bring in an average of $2.85 billion in revenue for the next quarter, which is a year-over-year growth of 27.2%. The current and subsequent fiscal years have respective revenue projections of $8.34 billion and $9.68 billion, which indicate an increase of +39.2% and +16.1%, respectively.
Recent Outcomes and Astonishing Background Information
Airbnb, Inc. reported revenue of $2.1 billion for the most recent quarter, which is a +57.6% increase over the same time in the prior year’s financial report. The earnings per share for the same period in the preceding year were -$0.11, but they have now improved to $0.56.
The actual revenue came in at $2.10 billion, which is 0.23% lower than the Zacks Consensus Estimate of $2.11 billion. The unexpectedly high level of earnings per share came in at 36.59 percent.
In each of the previous four quarters, the business posted earnings per share that were higher than the consensus expectation. During this period, the company’s revenues were three times higher than the consensus prediction.
Valuation
Investment choice can only be considered adequate if the stock’s value is considered first. When attempting to forecast the price performance of a stock in the future, it is essential to determine whether or not the current price of the stock adequately reflects the intrinsic worth of the underlying business as well as the growth potential of the firm.
Comparing the current price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF) valuation multiples of a company with its historical values can help determine whether the company’s stock is fairly valued, overvalued, or undervalued. However, comparing the company to its peers on these metrics can give a good sense of the stock’s price and whether or not it is justified.
Conclusion
You can determine whether or not it is appropriate to pay attention to the market rumor about Airbnb, Inc. by looking at the facts shown here and in further depth on Zacks.com. On the other hand, considering that it has a Zacks Rank of #2, it has the potential to outperform the market in the short future.
According to a Stock Forecast, Since Its Initial Public Offering in 2020, Airbnb’s Stock Has Changed.
They seem to be on pace to achieve previous highs in recent years.
The stock forecast reports that the company’s stock is trading at a 37% discount from its initial public offering price. Investors may ask whether now is a good time to invest in this travel company. Consider these two Motley Fool contributors’ bull and bear arguments before making a choice.
In response to Keith Noonan’s question: the current market crash for growth firms has unjustly squeezed Airbnb’s shares, which is a category-leading company in the accommodation-rental area. As a result, the company’s stock is down almost 45 percent this year and 58 percent from its all-time high. Long-term investors should take advantage of the current discount in the stock’s price to purchase it.
Airbnb is on pace for a record year of commerce as pandemic-related restrictions have loosened throughout the globe. The company’s platform saw a 59 percent year-over-year rise in bookings made via the company platform to reach 102.1 million nights and experiences in the first quarter. As a result, the company’s entire sales increased 70% to $1.5 billion throughout the time. That being said, the remainder of the year looks much better.
It’s an asset-light, highly scalable company with plenty of room to grow. They seem to be on pace for success. The company has become significantly profitable this year, and the gross margin of about 76% recorded in the most recent quarter predicts enormous profit growth in the future. Accommodation rentals and local experience reservations are big marketplaces for the firm, and it has proved to be adaptive in the face of recent problems.
Long-term investors seeking growth possibilities will appreciate that Airbnb has one of the most robust risk-to-reward ratios in the market right now.
Parker Tatevosian (President of Armenia): Despite Airbnb’s promising short-term prospects, my thesis for the firm recognizes its long-term potential. As vaccines against the coronavirus spread, those who had postponed travel in the early phases of the pandemic are now able to take advantage of that demand. On the contrary, I will argue that Airbnb’s lack of proven successful operations and the negative of its asset-light business model are the main reasons to avoid investing in it.
No listings on the Airbnb platform are owned or operated by Airbnb. It connects would-be tourists with hosts with accommodations available for short-term or long-term rental. Each transaction on the site is subject to an Airbnb fee and payment facilitation, but the majority of the specifics are left up to the hosts and guests themselves. It’s possible that taking a more detached stance toward the consumer experience has drawbacks.
Airbnb can’t guarantee an excellent visitor experience. With an Airbnb stay, you never know what you’ll get. Some hosts will go out of their way to ensure their guests are satisfied. Others may ignore phone calls and emails from their guests. On the other hand, traditional hotels and resorts tend to provide a standardized experience.
From 2017’s $2.5 billion in income, Airbnb is expected to generate $6 billion in revenue by 2021. This means that to maintain the same quality for its guests in the next few years, Airbnb will have to depend more and more on younger hosts with less experience to join and advertise homes for rent.
As a result, despite the company’s rapid expansion and asset-light business strategy, Airbnb has yet to reach net profit for an entire fiscal year. On sales of $6 billion in 2021, it increased operating profits to $542 million, but it still recorded a loss per share of $0.57.
Is it worthwhile to invest in Airbnb?
Because of its growth-dependent value and vulnerability to macroeconomic headwinds, Airbnb’s stock carries a large amount of risk. Investors not put off by the market’s recent volatility may want to take advantage of the disconnect. Investing in Airbnb stock over the long term has the potential to be quite profitable.
Airbnb Anticipates a Busy Summer Due to the Ongoing Recovery of the Coronavirus Epidemic.
Airbnb, often hailed as one of the most popular apps among Chinese millennials, is being forced to close down its operations in China due to unprecedented level of internet sanctions in the country. While Airbnb is removing nearly 150,000 listings, the company says it will continue to have an office in Beijing to facilitate Chinese traveling abroad. Airbnb is expected to continue a few hundred employees in its Beijing office.
During the last few years, China introduced a number of internet-related sanctions to discourage American (and other international) apps to promote local brands within the digital space.
Airbnb also claims that these sanctions are impacting competitiveness, as local apps of similar nature are available at a cheaper rate now. Remember that Airbnb is not the only multinational app to be forced to pack its bags in China.
Previously, in October, LinkedIn also shut down its Chinese operations due to similar reasons. China seems motivated to go an extra length to facilitate domestic businesses even if it comes at the cost of reduction in foreign investment in the country.
As per some reports, Chinese millennials made up 69% of Airlift’s customers’ base in China, with 70% of them owning a house. Such figures are unheard of in America where significantly less percentage of citizens of any age bracket own a house.
Remember that this announcement of shut down comes at a time when Airbnb succeeded in surpassing 100 million nights’ bookings in a single quarter despite rising inflation, interest rates and Ukrainian war.
Airbnb has also been criticized for playing a major role in the housing shortage recently. On its defense, however, the company claims it helps individuals and families in earning additional income amid deteriorating financial conditions in many of the top cities in the world.
Airbnb reported better-than-expected earnings Tuesday (May 03) due to the epidemic and made an optimistic prediction for the second quarter. Airbnb CEO Brian Chesky appears ready to file for an IPO now that holiday rentals and hotels are struggling.
Analysts predicted a loss of 29 cents per share, but it was only 3 cents per share. In addition, Refinitiv reported that revenue was $1.51 Billion, compared to the $1.45 Billion predicted.
The epidemic caused almost half the value of one of the most valuable start-ups globally to lose its worth. As a result, Airbnb’s CEO, Brian Chesky, will apply for an IPO within the next few months.
It stated that “Macroeconomic problems,” “pandemic fear,” and the ongoing conflict with Ukraine didn’t affect the company’s first-quarter revenue by 70%.” Airbnb’s net loss decreased from $1.2 billion last year to $19 million in the same quarter.
Airbnb expects to generate revenue between $2.03 billion-$2.13 billion, based on an average forecast of $196 million. Airbnb would expect a growth rate between 52% and 53% at the lower end. Bookings could be affected by Covid outbreaks in the future, travel disruptions caused by Ukraine’s situation, or if prices are sensitive.
The Business Beat Wall Street Expectations and Provided a Bullish Outlook for the Second Quarter.
Airbnb booked 102.1 million nights and experiences in the first three months, surpassing pre-pandemic levels. StreetAccount analysts forecast that the number would reach 100.87 million.
Online travel agencies are increasingly trusted by more people, who make reservations months ahead of time. As a result, the company’s summer bookings had increased by 30% compared to 2019.
Airbnb estimates that $17.2 billion of gross booking value was achieved, which Airbnb uses to calculate host revenue, including service fees and taxes. That represents a 67 percent increase in bookings over the year before.
The business expects ADR to remain unchanged in the second quarter a year-over. ADR is expected not to change in Q2 2022. However, the company believes an increase in Nights and Experiences Booked can be used to predict GBV growth in this quarter.
The Covid-19 epidemic has profoundly impacted people’s travel and work habits, leading to Airbnb becoming a more popular option. Workers were accustomed to being able to work anywhere. Many companies still allow employees to work remotely.
Airbnb announced last week that its workers would be able to work anywhere in the United States. Starting in September, employees will have the opportunity to work and live in over 170 countries around the globe for up to 90 days per year.
Airbnb stated that the longest-lasting category of Airbnb’s fastest-growing travel duration categories was long-term stays lasting at least 28 days. That compares to 2019.
Comparing the numbers to the year before, we see that gross nights booked increased in non-urban areas during the first quarter of 2019. However, Airbnb claims it sees “strong signals” of tourists returning to the city despite this. Airbnb has seen an 80% increase in nights booked in high-density metropolitan areas in the past year.
Also, humanitarian activities in Ukraine were discussed. Airbnb’s generosity could allow up to 100,000 migrants to find temporary, free lodging. Airbnb launched in Europe in 2009 and has hosted more than 14,000 people. It also registered 34,000 host homes to aid those fleeing persecution and conflict.
When customers began reserving listings for Ukraine without intending to stay, the firm removed both host and guest fees. That was done to assist the hosts. As a result, Airbnb bookings in Ukraine generated $20 million in gross booking value (GBV).
An Opportunity for Savvy Investors in Airbnb’s Falling Stock Price
The company’s very effective business strategy assures long-term success for investors.
- Airbnb has shown it can expand both sales and profitability.
- The company’s moat is growing due to rising brand value and a robust business plan.
- Despite a potential economic recession, the firm is in good shape.
For long-term investors, this is a fantastic chance.
However, investors know that there is no such thing as a perfect investment and that Airbnb is not immune to risk.
First, competition from large, established companies like Expedia’s VRBO and smaller, regional businesses will only increase.
Second, some municipalities have imposed regulations on Airbnb because it disrupts the peace of residential areas.
Third, investor groups have started buying up Airbnb properties in high-demand areas, driving up rental rates and the local property market.
Policymakers are taking notice of these changes, which might lead to new regulations that slow Airbnb’s expansion.
However, the benefits of Airbnb’s ubiquitous name recognition, scalable business model, and network effects far exceed the dangers.
Additionally, the current share price is close to being at an all-time low compared to the company’s revenues.
