1 Number That Shows Why Airbnb Is a No-Brainer Buy
A little more than two years after it laid off a quarter of its workforce, Airbnb (NASDAQ: ABNB) has become one of the more profitable companies on the stock market.
In its second quarter, the company posted a net profit margin of 18%, but its performance was even stronger on an arguably more important metric. Based on its free cash flow, the company kept 38% of the $2.1 billion it made in revenue as cash profits. That's real cash it can redistribute to shareholders, invest in other projects, or keep on the balance sheet.
That 38% margin is also far better than that of most publicly traded companies and highlights what makes the company's business model so powerful.
Source Fool.com
