3 Reasons to Buy Airbnb Stock and 1 Reason to Sell
Airbnb (NASDAQ: ABNB) is one of my favorite stocks to buy right now. The worldwide travel facilitator is rebounding strongly after the devastations of the pandemic. Of course, the world is still grappling with the outbreak, but widespread vaccination in most parts of the globe has given governments the confidence to ease travel restrictions.
There are more reasons to buy Airbnb stock than the bounceback in travel demand. Its asset-light business model is generating strong cash flow, Airbnb has a massive market opportunity ahead, and it offers a better selection to travelers than traditional hotels. That said, the increasing risk of a recession is one reason to hesitate. Keep reading for more detail on each.
Airbnb's business model is favorable for generating cash flow. The company does not own or operate any of the listings on its platform. Instead, it encourages hosts and travelers to transact on its website, and takes a percentage of each booking. This way, Airbnb does not need to invest massive sums in building hotels or resorts. Furthermore, it does not need to maintain these properties, saving the expense of staff, landscaping, and utilities.
Source Fool.com
