Airbnb, Inc. (ABNB): A Bull Case Theory

We came across a bullish thesis on Airbnb, Inc. on Johnny's bearish Investing’s Substack. In this article, we will summarize the bulls’ thesis on ABNB. Airbnb, Inc.'s share was trading at $118.80 as of December 1st. ABNB’s trailing and forward P/E were 27.85 and 24.04 respectively according to Yahoo Finance.

Airbnb’s long-term growth story is supported by a blend of technology-driven innovation, cultural resonance, and strategic expansion into adjacent markets. The company’s evolution into an AI-powered, hospitality-driven tech platform positions it to strengthen profitability and deepen customer engagement. With its acquisition of GamePlanner and the involvement of Siri’s founder, Airbnb is laying the groundwork for an AI-driven “concierge” experience, starting with customer service and eventually transforming the app into a personalized travel assistant.

While competitors like Booking.com have advanced further with integrated AI tools, Airbnb’s broader vision suggests meaningful long-term operating margin expansion toward 25%. The “Belong Anywhere” philosophy remains central to Airbnb’s identity, with management focusing on expanding its base of individual hosts, enhancing authenticity, and preserving its community-oriented model.

Expansion into underpenetrated regions, especially across Asia, alongside growing participation in mid-term rentals, could propel revenues from $11 billion in 2024 to $28 billion by 2035. Additional upside stems from converting just one in nine hotel customers—a shift that could add roughly $5 billion in revenue—and from new business lines such as co-hosting and Experiences, each targeted to generate over $1 billion annually.

Long-term ambitions include evolving into a “travel super app” and ultimately replicating Amazon’s ecosystem model, fostering daily or weekly engagement beyond travel. Despite regulatory pressures, supply-demand imbalances, and key person risk centered on CEO Brian Chesky, Airbnb’s strong founder-led management and robust balance sheet—with $9 billion in net cash—support the thesis. A 2035 valuation of $350 per share implies a 12% annualized return from $125 today, reflecting a conservatively grounded yet compelling decade-long compounding opportunity.

Previously we covered a bullish thesis on Airbnb, Inc. (ABNB) by Chit Chat Stocks in May 2025, which focused on expanding Experiences and Services to build a full travel ecosystem. Since then, ABNB’s stock has depreciated by 13.15%, reflecting early-stage execution. Johnny’s Bearish Investing presents a similar thesis, emphasizing AI integration and regional expansion as core long-term growth drivers.

Airbnb, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 79 hedge fund portfolios held ABNB at the end of the second quarter which was 66 in the previous quarter. While we acknowledge the potential of ABNB as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.