Airbnb Stock Is Sinking: Are the Bears Right About the Travel Disruptor?
Airbnb (NASDAQ: ABNB) is a controversial stock. Evangelists claim it is going to be one of the next great internet giants, while critics believe it's an overpriced platform that peaked during the COVID-19 pandemic. Investors are generally very optimistic or very pessimistic about Airbnb with little middle ground.
I generally fall into the optimistic camp: It has a differentiated service with a long runway to grow and a fantastic brand. But could the bears be right? Let's take a look at why they're so negative on Airbnb and see if their arguments make sense.
Third-quarter earnings were a classic example of why people are bearish on Airbnb. The company grew revenue 14% year over year in constant currency to $3.4 billion, which seems strong. However, if you look at its largest competitor, Booking Holdings, Airbnb is falling behind. Booking Holdings grew its revenue 18% year over year to $7.3 billion during the same period. Faster revenue growth at double the size? It looks like Booking Holdings is gaining significant market share on Airbnb, at least recently.
Source Fool.com
