Airbnb Is Down 54% From Its High. Time to Buy?
The slumping stock market appears to have stabilized for the moment. The tight economy and depressing earnings season continue to influence stocks, but investor enthusiasm is making a brave show as it keeps stocks from falling back into a bear market despite the pessimistic outlook.
One stock suffering the market's ups and downs is Airbnb (NASDAQ: ABNB). After soaring following its initial public offering (IPO), the stock is now down 54% from its 2021 highs. So is now the time to buy?
Lots of people who needed a place to stay over the past two years chose an Airbnb rental, propelling the company to triple-digit revenue growth in 2021 and double-digit growth so far in 2022. The massive rebound was so strong that it turned the company profitable, including net income of $1.2 billion in the 2022 third quarter. Airbnb also generated $960 million in free cash flow in the third quarter and $3.3 billion for the trailing 12 months. In other words, this isn't an anomaly but a sustainably profitable business model.
Source Fool.com
