Airbnb Stock Surges on Earnings Beat, Expansion Plans
Airbnb (ABNB) shares rallied over 14% in early trading on Friday after the company reported strong earnings and outlined ambitious growth plans.
CEO Brian Chesky expressed a desire to transform Airbnb from a vacation rental marketplace into a comprehensive travel and lifestyle platform, similar to Amazon (AMZN). The company plans to launch multiple new businesses adjacent to travel over the next several years.
Airbnb's current annual usage rate of 1.6 billion devices stands at just one or two times per year. Chesky aims to increase this frequency to several times per week.
The expansion strategy will require an investment of $200-$250 million, potentially impacting near-term margins. Analysts from JPMorgan and Jefferies have maintained neutral and hold ratings on the stock, respectively, citing execution risks associated with new businesses.
Q4 revenue exceeded expectations at $2.48 billion, up 12% year-over-year. Gross bookings also climbed 14% to $17.6 billion, surpassing analyst forecasts.