Report
Valens Research

ABNB - Embedded Expectations Analysis - 2021 08 02

Airbnb, Inc. (ABNB:USA) currently trades near historical highs relative to UAFRS-based (Uniform) earnings, with a 21.0x Uniform P/E. At these levels, the market is pricing in bullish expectations for the firm, but management may have concerns about the pace of travel recovery, listings growth, and the European market.

Specifically, management may have concerns about the pace of the recovery of urban and cross-border travel, their decision to relax host requirements, and the sustainability of elevated bookings for longer stays in the urban market. Additionally, they may lack confidence in their ability to maintain the size of their business and sustain the growth in listings, especially in their European business. Furthermore, management may have concerns about lowering the barrier for entry for new guests and the pace of the acceleration of their European business. Finally, they may be exaggerating the efficiency of their new tools and search engine and the impact of workplace flexibility.
Underlying
Airbnb Inc. Class A

Provider
Valens Research
Valens Research

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