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

We came across a bullish thesis on Airbnb, Inc. (ABNB) on Substack by Chit Chat Stocks. In this article, we will summarize the bulls’ thesis on ABNB. Airbnb, Inc. (ABNB)'s share was trading at $136.79 as of May 15^th. ABNB’s trailing and forward P/E were 34.72 and 31.35 respectively according to Yahoo Finance.

Airbnb has reintroduced and expanded two key features—Experiences and Services—that aim to deepen user engagement and broaden its value proposition beyond accommodations. Experiences, previously underutilized, focus on tours and activities that appeal to Airbnb’s core demographic—travelers seeking immersive, local experiences rather than isolated hotel stays. While demand is expected to be strong given Airbnb’s captive user base, supply will be the key hurdle. However, the success of similar platforms like Viator, which already boasts over 1,000 listings in Buenos Aires, suggests that Airbnb can grow supply by attracting dual-listed hosts, especially with its superior traffic and capital advantage. Also, take a look at an article discussing Booking Holdings Inc., a leading company in the travel and hospitality sector.

The more ambitious bet is on Services, which include offerings like spa treatments, catered meals, and personal training, currently launching in 260 cities. Though still early and potentially more relevant to affluent guests, this move positions Airbnb to appeal to luxury travelers accustomed to hotel-style amenities. Even if some offerings miss, this is part of Airbnb’s broader strategy to become the “Airbnb for Everything,” turning a vacation rental into a holistic experience hub. Financially, the strategy serves two purposes: to drive incremental spending from current users and to convert hotel-loyal guests into Airbnb customers by replicating full-service experiences. In the long term, Airbnb even envisions non-travelers using the platform, although that remains speculative. Still, with a decade-long growth horizon and unit economics that suggest undervaluation, the investment case for Airbnb remains compelling.

Airbnb, Inc. (ABNB) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 54 hedge fund portfolios held ABNB at the end of the fourth quarter which was 54 in the previous quarter. While we acknowledge the risk and potential of ABNB as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than ABNB but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.