Airbnb to Expand into New Businesses, Aims for Amazon-Like Dominance
Airbnb (ABNB) stock soared over 15% in premarket trading on Friday after beating earnings estimates. CEO Brian Chesky outlined plans to transform the vacation rental platform into a comprehensive travel and lifestyle destination.
"We want Airbnb to be like Amazon (AMZN), a one-stop shop for all your travel and living needs," Chesky said. "Accommodation is just a small part of the equation."
The company announced plans to launch multiple businesses adjacent to travel over the next four to five years. Specific details were not disclosed, but Chesky cited Amazon's growth trajectory from books to entertainment to e-commerce as a model.
Airbnb currently serves 1.6 billion devices annually, but Chesky aims to increase usage from once or twice a year to once or twice a week.
The expansion into new businesses will entail an investment of $200-$250 million, which may impact near-term margins. JPMorgan analysts cautioned that margins could compress up to 200 basis points.
Despite the growth potential, some analysts remain cautious. Jefferies analyst John Colantuoni advised holding on the stock until the impact of new businesses and timing of sponsored listings become clearer.
Airbnb's Q4 revenue rose 12% year-over-year to $2.48 billion, surpassing analyst expectations. Gross bookings surged 14% to $17.6 billion, above Wall Street estimates.