Should I Buy Airbnb Stock How To Make The Right Decision

Should I Buy Airbnb Stock? How To Make The Right Decision

Business

Airbnb is a company that provides an online marketplace and hospitality service, enabling people to lease or rent short-term lodging, including vacation rentals, apartment rentals, homestays, hostel beds, or hotel rooms. Airbnb was founded in 2008 and is currently valued at $31 billion. The company has experienced tremendous growth since it’s humble beginnings as an air mattress in one man’s living room.

So should you buy Airbnb stock? There are many factors to consider such as the company’s revenue and value as well as future plans for expansion. Currently, Airbnb has more than 2 million listings in over 190 countries and 34,000 cities around the globe. They have done this by creating a community of users with real connections to local neighborhoods that want to share

The Business of Airbnb

Revenue

Airbnb is in the business of renting accommodations which means the company takes a fee for every transaction a host goes through with a guest. The company has been on a roll recently and in 2016 they sold an additional 6.5 million vacation rental homes. As for 2016, the company reported revenue of $1.07 billion for the first time in the company’s history. This was an increase from the $845 million it made in 2015. In the second quarter of 2016, the company generated $122 million in revenue which is up 78% from the same quarter last year.

The best thing about Airbnb is the ability to book a place to stay based on location and price, similar to hotels. Accommodation can also be arranged through a community of users.

Why You Might Want To Invest

While Airbnb is undoubtedly a hospitality service, it is a business with many other potentially significant benefits, including a long growth runway, strong profitability, and a huge market opportunity. And while the company generates most of its revenue through fees paid by users, it has demonstrated the ability to grow into substantial profits rapidly.

Growth Opportunity

The Airbnb economy is still in the early days of growth and has a significant long-term growth runway. For example, there are currently approximately 500,000 hotel rooms in Europe alone. In addition, there are currently about 4 million short-term rental properties or about $4 billion in annual bookings in the U.S., where the company is headquartered.

Can You Really Trust Airbnb?

As the company has grown, they have taken on a number of different roles such as providing event space to cities and public events. In 2012 Airbnb merged with Private Club Network to expand into Hospitality Network. In 2016 Airbnb acquired Luxury Retreats. Luxury Retreats is an exclusive luxury vacation rental business and is expected to increase its revenue by 400%. Airbnb has also been on the rise with their recent earnings report seeing a massive 60% increase in revenue.

Conclusion

Airbnb is a well-run company with positive future prospects, and the stock price reflects that. At just over $300, the stock is currently trading slightly undervalued compared to its fair value based on future growth expectations and the expected return for investors. However, the company has not yet broken out from its current $3 billion valuations and needs to put up a stronger showing before it can turn into a long-term winner.

Uneeb Khan

Uneeb Khan CEO at blogili.com. Have 3 years of experience in the websites field. Uneeb Khan is the premier and most trustworthy informer for technology, telecom, business, auto news, games review in World.

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