Should you buy Airbnb stock after the post-earnings pop?
Shares of Airbnb Inc (NASDAQ: ABNB) are up 10% in extended trading after the vacation rentals company reported a profit for its fiscal 2022.
Airbnb issues upbeat guidance
Shareholders are also rewarding the online marketplace for short-term stays for its upbeat guidance that signalled the company expects demand to remain strong moving forward.
Airbnb now expects its revenue to fall between $1.75 billion and $1.82 billion in the current quarter. In comparison, analysts had forecast $1.68 billion. Reacting to the earnings print on Yahoo Finance, D.A. Davidson analyst Tom White said:
They said margins in CY23 will be in line with 2022. Some investors worried that as economy reopens, operating expenses might take up. But it sounds like Airbnb will be able to hold margins.
Year-to-date, Airbnb stock is now up more than 50%.
Is it worth buying Airbnb stock here?
Gross bookings in the recent quarter, though, slightly missed expectations.
At 88.2 million, nights and experiences booked also fell shy of 89.7 million that experts had anticipated, as per the earnings press release. Still, White said:
Nights growing significantly at a faster clip than some of the other, big, more traditional online travel brands. Airbnb was able to use pandemic to acquire a new cohort of customers. Those will be sticky customers over the long term.
The D.A. Davidson analyst continues to recommend that investors buy Airbnb stock.
Notable figures in Airbnb’s Q4 earnings report
- Net income printed at $319 million versus the year-ago $55 million
- Per-share earnings also climbed significantly from 8 cents to 48 cents
- Revenue shot up 24% on a year-over-year basis to $1.90 billion
- FactSet consensus was 26 cents of EPS on $1.86 billion in revenue
- Average daily rate of $152.81 also came in better-than-expected
In 2022, active listings on Airbnb grew by a whopping 900,000 (16%). Analyst Tom White added:
Vacation rentals continues to be the best-performing pocket of the market. Airbnb’s got the most geographically diverse inventory, hits all use cases. Mounting inflation and then some macro pressures we think will be a tailwind for supply.
Late last year, famed investor Jim Cramer had greenlit owning Airbnb stock as well (find out more).
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