Airbnb Q3 2024 Earnings/Stock Analysis 📊

Airbnb Q3 2024 results are hot off the press! Revenue grew 10% to $3.7B (all time high), and the company is planning to launch 1-2 new $1B+ revenue businesses next year, and every year going forward. On the conference call Brian Chesky kept comparing Airbnb today to Amazon when they were selling just books. Chesky sees the company expanding well beyond travel into new products and services. This will mean investments in growth will ramp next year. Airbnb is moving to be on offense and growth mode, and exciting inflection point. Let me know what you think in the comments below! $ABNB

Disclaimer: I'm long Airbnb stock. Nothing in this show is financial advice.

[smr]

AI stocks will dominate 2025 and Why I prefer NVIDIA is that they are better placed to maintain long term growth potential, and provide a platform for other AI companies. I know someone who has made more than 200% from NVIDIA. I'll also take these other recommendations you made

[InnovativeSustainableSolutions]

I learn so much about how to analyze a company from these breakdowns. Thanks Gali! How bout that BTC run up?!?

[rtorcato]

Why don’t they do a rewards program like hotels.

[manasawalaaamir]

great analysis, and I think the stock is very undervalued

[ichoudhury]

We practically stopped booking hotels since we discovered it. I like the idea of reward program, as well as ‘sampling before buying’ deals as some of your viewers in comments suggested. They need to send vacation brochures with ideas to help people discover AirBnb living. I think many still don’t understand the idea of living in other people’s homes when on vacation. 😊

[Fujis-qi]

Solid analysis. I just read their earnings report and then came here to watch this. I like how detailed they are with their charts in their report. Like you said, juicy. Now, I am considering today’s price as an opportune entry point into the stock. It’s down 9%, equating to a market value of $83B. With $4B in free cash flow, this is a P/FCF ratio of only 20.75. This seems good for the high-growth company that it is. On the flip side, my concern is about another competitor disrupting Airbnb in the future.

[alexp.]

Long-term Airbnb stays are not appealing to many property owners because after certain amount of days a short-term renter gets property tenant rights, which makes them very difficult to evict for non-payment, making squatting possibility a real headache for the owner.

[jonp]

If he won't talk about what the new businesses are that's pretty sus. The moat shouldn't be secrecy it should be difficulty or innovation, something unique other people can't copy.

I agree with you on long term rentals. They have an amazing platform and network effect for hosts and travellers and focusing on long term too seems like a really easy win to get more traffic. They could even extend into longer leases and annual rentals, handling deposits and cleaning and pricing and guarantors etc.

[vix]

Let’s goooo!! Hope you can get in touch with them, they need you!

[DanFrederiksen]

If nothing else it seems to be a cash machine. I don't care for the business but might grow as a stock

[DONGXiiTheChinaOpportunity]

Fascinating stock pick idea, Gali - I like the rabbit hole you are going down. We are currently buying a house in Italy and will turn it into an Airbnb, so I am already hooked on your idea. However here is some critical thinking and I'd love to hear your opinion on this:

1. How do you think the mortgage rates impact Airbnb in the next few years? Hasn't it become less and less "profitable" to invest in real estate and to turn them into Airbnbs. What would you think would happen if there is not enough new supply of places coming onto the market, and if we also see Airbnb average prices peaking out a little bit, given people have to save more of their money. 

2. Also one thing I observe in my own experience is that sometimes I like to stay in hotels again for service and amenities. Its like booking a flat rate: You know what you get: A consistent service level and not having to bother about cleaning, bringing out trash cans etc.

3. Where is the data and AI angle with Airbnb? They have so much insight about preferences and the real estate market, too. How could the leverage it, and why are there no AI initiatives by Airbnb yet?

[taylorraeburn]

Airbnb new Yellow Pages?

Would be cool if they also had local meetups like if I wanted to find some people to meet up with to do an activity. Linking people with similar interests.

[davec]

I had airbnb and also ran an airbnb successfully but then my city started banning short term rentals and suspended my business license.

[codygulseth]

If Airbnb is working so hard to increase revenue growth, do you think the cash spent on buybacks could be better spent on increasing growth?

[slimgym]

Chesky been repeating the same stuff for over 2 years, I’m starting to question his execution

[apwvan]

What about ar bnb becoming real estate comoany letting ppl sell there own house on the app ?

[Masonharrigton]

!!! From $37K to $65K that's the minimum range of profit return every month I think it's not a bad one for me, now I have enough to pay bills and take care of my family...