Airbnb — Bullish 😊

Airbnb reported 2023 Q1 earnings on May 9, 2023. Let’s look at some popular bullish and bearish opinions.

Latest Earnings Highlights

• Investor Relations
• 2023-Q1 shareholder letter
• Revenue of $1.8 billion increased 20% YoY
• First GAAP profitable Q1 with $117 million of net income
• Gross Booking Value increased 19% YoY
• Generate $1.6 billion of free cash flow, up 32% YoY.

😊 Bullish Opinions

Growth

• In the latest Q1 earnings, 20% revenue growth is strong.
• Market demand for travel is still strong.

Profitability

• Achieved the First GAAP profitable Q1 with $117 million of net income.
• Airbnb has proven its ability to scale effectively and improve margins.
• Fewer physical assets

Founder Led

• Co-founder CEO Brian Chesky is still leading the company.

Brand

• Airbnb has a very strong brand identity and become the go-to name for short-term rentals.

Buyback

• Airbnb has repurchased $1.5 billion and will likely continue buyback shares.

😞 Bearish Opinions

Valuation

• AirBnb’s P/E ratio is 33, which is higher than the 20ish industry average P/E ratio.

Cyclical

• Airbnb's demand will decrease if fewer travelers travel due to a looming recession.

Conclusion

More investors are Bullish on Airbnb as its business has no big red flags. Worries are mainly from its high valuation and cyclical travel demand.