Airbnb's Massive $1.9 Billion Profit, Explained. Time to Buy?
For investors who love profits, short-term rental platform Airbnb (NASDAQ: ABNB) has them in spades. In 2022, the company recorded its first full calendar year of positive net income. And it did so in style.
Airbnb generated revenue of $8.4 billion and earned net income of $1.9 billion. That's a profit margin of nearly 23% -- among the highest on the stock market. And there's a simple explanation for the company's quick and dramatic rise to profitability.
Operating leverage is a great concept for investors to have a firm grasp on. And Airbnb is giving investors a master class on the subject, starting back in early 2020. But before we look at its profits, I'll first give some context.
Source Fool.com