Stock Spotlight: Airbnb falls short of five-star rating on valuation but analysts remain optimistic

‘Choppy period of bookings ahead’

Airbnb’s Q3 results were released last week, revealing a revenue jump of 29% and a gross booking value of $156.44, compared to expectations of $153.50.

Despite strong results, Louis Coke, investment manager at Charles Stanley, noted that Airbnb has had "a very challenging 2022", with a share price decline of 42.3% and underperforming the S&P 500 by a considerable margin, which fell 20.8% in the same period, according to Morningstar. Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, said: "Airbnb successfully reinflated its business model after Covid blew a hole through its bookings, but there is now concern that its rapid growth rate could be experiencing a slow puncture due to soaring inflation." Neil ...