Airbnb (ABNB) Stock Forecast & Price Target

Airbnb demonstrated solid financial performance for the 12 months ending December 2024, with Net Sales Revenue growing 11.95% year-over-year, rising from $9.92 billion to $11.10 billion. The company's Q4 showed a notable increase in Gross Booking Volume (GBV), which rose 13% year-over-year to $17.6 billion, propelled by a 1% rise in Average Daily Rate (ADR) and significant growth in in-app bookings, which accounted for 60% of nights booked. Furthermore, ongoing initiatives to expand the host base and leverage artificial intelligence for improved guest experiences position Airbnb for continued revenue growth, with a forecasted annual revenue increase of 14.21% to $12.68 billion over the next twelve months.

Airbnb has experienced a significant decline in financial performance, as evidenced by a year-over-year reduction in Return on Capital (ROC) from 61.44% to 32.49% and a 46.23% drop in Net Operating Profit After Tax (NOPAT), falling from $4.99 billion to $2.68 billion. Additionally, Economic Profit (EP) decreased by 54.63%, from $4.34 billion to $1.97 billion over the last twelve months, reflecting a troubling trend in profitability. Contributing factors to this negative outlook include adverse foreign exchange effects, challenges in expanding beyond its core business, and potential risks associated with valuation declines.