Airbnb Plans to Diversify App with New Businesses, Following Earnings Beat
Airbnb (ABNB) stock surged over 14% in early trading on Friday after the company reported better-than-expected earnings.
CEO Brian Chesky outlined plans to expand Airbnb's app into a comprehensive platform for all travel and living needs, similar to Amazon (AMZN). He noted the app's annual usage by 1.6 billion devices and the opportunity to increase engagement to once or twice a week.
To support this expansion, Airbnb will invest $200 million to $250 million in launching and scaling new businesses. While this investment may impact near-term margins, analysts remain cautiously optimistic.
Airbnb's Q4 revenue grew 12% year over year to $2.48 billion, exceeding expectations. Gross bookings also rose 14% to $17.6 billion.
Despite the positive financial results, analysts have varying opinions on the company's future. JPMorgan reiterated a Neutral rating with a $160 price target, citing potential margin compression from new business ventures. Jefferies maintained a Hold rating with a $165 price target, emphasizing the need for clarity on new product contributions and sponsored listings.