Airbnb (NASDAQ: ABNB) has been one of the biggest disruptors of the mobile era. The company has transformed the hotel and accommodations industry, essentially inventing a new category of short-term lodging.

While Airbnb has become a formidable player in the accommodations industry, the stock hasn't always been a winner as it faces a number of risks from regulators, rising competition from traditional online travel agencies like Booking Holdings, and the volatility inherent in a cyclical industry like travel.

That vulnerability was on display in its second-quarter earnings report as the stock plunged 17% in after-hours trading, reaching its lowest point in more than a year. Let's break down the earnings report before discussing why the sell-off offers a good buying opportunity for investors.

Continue reading

Source Fool.com