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Airbnb Analysis (#ABNB)

Airbnb Analysis (#ABNB)

31 March 2021

Airbnb is an online platform for placing and searching for short-term private housing rentals around the world. Airbnb users have the opportunity to rent out their accommodation to travelers in whole or in part. The site provides a platform for establishing contact between the host and the guest, and is also responsible for processing transactions. Airbnb offers accommodation in 65,000 cities in 191 countries. Since its founding in August 2008, more than 200 million people have found housing through the Airbnb website. For its activities, Airbnb charges a certain percentage — from the owners of the apartments 3 % of the booking amount, from the tenant-from 6 % to 12 %. In December 2020, Airbnb held an IPO on the US stock exchange NASDAQ, following the placement of shares of the company managed to raise $ 3.5 billion.

The company’s biggest competitor is Booking Holdings. However, the business model of this company is different then #ABND.

Revenue for 2020: $3.4 B (-30% y-o-y)

Operating loss for 2020: $3.4 B

Net loss for 2020: $4.5 B

Earnings per share for the latest quarter: -$10.84, below the forecast of $9.16

The crisis has had a significant impact on the company’s business development.

Geographical distribution of revenue:

International – 51.20%

United States – 48.80%

The company has been developing rapidly in recent years. However, the current crisis has significantly slowed down this development. Therefore, the company’s management is faced with the task of returning the indicators to pre-crisis levels in 2021.

It is also worth noting that the company has no competitors globally, which is a significant advantage. Of course, there are potential competitors in each individual market within the countries, but their revenue volumes and the number of customers are several times less than that of #ABNB.

Thus, Airbnb is a young company that has a monopoly on the global rental market. In addition, about half of the company’s revenue comes from markets outside the United States, which indicates a good geographical diversification of the company. However, if we evaluate the paper at the current multipliers, the company is clearly overestimated by the market.

31 March 2021
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