Are you interested in buying or selling Airbnb stock, which recently went public? In this article, you will find the information and data you will probably need to analyse this stock in order to help you anticipate future trends. You will find information on the company's activities and sources of revenue, a presentation of its major competitors, its recent partners and information to take into account in the context of its fundamental analysis.
Firstly, it will be important to monitor regulatory developments in favour or against AirBnB accommodation. These factors can either slow down or boost AirBnB's rentals and therefore its activity. This concerns in particular the taxes to be paid by individuals who rent out their accommodation or the limits on rentals during the year.
It will also be necessary to closely monitor the development of new functionalities and new technologies by AirBnB in order to facilitate the rental of the accommodation offered or the administrative management for the renters. This was notably the case with the launch of AirBnB plus, which is a form of hotel platform for those who are resistant to the classic AirBnB system.
The same applies to the diversification of the group's activities, which is not only focused on accommodation and has already started to invest in a restaurant platform or even tours through AirBnB experiences.
Legal action by local authorities may also influence AirBnB's activities in certain countries.
It is also important to keep an eye on the competition that the company is facing, particularly with regard to the large groups that used to specialise in the classic hotel sector and that are trying to establish themselves in this segment in view of its significant growth in recent years.
Finally, you should also follow the financial and economic publications of the AirBnB group, including its annual and quarterly results, which you should preferably compare with analysts' expectations and the objectives set by the company.
To increase your ability to analyse the Airbnb share price we now offer you a detailed presentation of this company and its activities. This will assist you in understanding its future challenges and how this group can face threats and increase its growth.
The Airbnb Group was previously known as ‘Airbed and Breakfast’, an American company that was basically a platform for community services relating to payable rental accommodation between individuals. This company was originally created in 2008 and has greatly developed since then, nowadays it boasts several million accommodation announcements and is present in over 190 different countries worldwide.
This small company thereby became the Airbnb Inc. Group that made its entry onto the New York stock market in December 2020. Its registered Office is in San Francisco in the United States. Concerning the European activities of Airbnb, these are exercised through the subsidiary Airbnb Ireland Private Unlimited Company Dublin which is an Irish company.
The economic model of Airbnb is simple as this company enables individuals to rent all or part of their accommodation as seasonal or occasional guest accommodation. The website offers services through its platform for users to find and reserve accommodation directly with the accommodation host. Since its creation dozens of millions of nights’ accommodation have been reserved through the use of this platform.
Since 2016 the Airbnb Group has been seeking to diversify its services through notably offering travellers certain experiences and places. The Experience service enables residents to share their social life, interests and work. Regarding the Places service this includes details on the places that are recommended according to specific criteria and are offered by expert guides of the place concerned.
Photo credits: Open Grid Scheduler / Grid Engine
Of course, when Airbnb created this model of touristic accommodation it stirred up a lot of interest in this market for some significant players in this market. Here are details of its major competitors that you should follow for your analyses:
This American company from Seattle operates several online travel agencies including Expedia.com, Hotels.com and Hotwire.com. It operates over 90 points of sale for its various brands in over 60 countries around the world and also provides travel reservation services for various airlines and hotels as well as brands well known to the general public and websites with high traffic. This company is quoted on the American S & P 500 stock market index and recently positioned itself in the same sector as Airbnb through the acquisition of the company Homelidays which is also specialised in seasonal rental accommodation between individuals.
This Dutch company and website also offers accommodation online with various properties available including hotels and guesthouses, as well as private accommodation such as with Airbnb. Its website is available in 43 different languages and is based in Amsterdam. It actually belongs to the American group Priceline since its acquisition in 2005. Booking is currently present in around 60 different countries and employs over 7,000 people around the world. It offers accommodation in over 540,000 properties in 202 different countries. Its economic model is not based on the invoice of reservation fees but is financed through commission that is invoiced directly to the providers of accommodation.
In 2020 the group announced that it was sponsoring the Olympic Games in Paris in 2024 which provoked a scandal. According to an announcement relating to the latter, the rental platform would become the major sponsor of the International Olympic Committee until 2028. This agreement was seen as an insult to the Parisian capital and the elected officials fought with Airbnb for a number of weeks regarding the requirement to possess a registration number to rent accommodation. Airbnb however contests the validity of the Parisian regulations applicable to them that are also applied by other countries.
Still in 2020 the group also implemented a strategic partnership with the Singapore Tourist Board through its subsidiary Airbnb Experiences with the aim of promoting high quality travel experiences in Singapore and promoting companies related to the Singapore Tourist Board to moving into the digital world and thereby become integrated with innovative hybrid commercial models. Through this partnership Airbnb and the STB can continue to offer quality experiences to international tourists in the current touristic context. The Airbnb platform has in fact dedicated a new page to this destination with the objective of presenting a collection of emblematic virtual experiences of this city-state.
To be able to best evaluate the abilities of the Airbnb Group to face the future, accelerate its growth and overcome certain threats, you need to understand the major advantages and disadvantages of this company.
Concerning the strong points of this group we particularly note the following:
Concerning the weaknesses of this company we note the following factors:
Airbnb has acquired a number of its competitors including Accoleo in Hamburg and CrashPadder in the United Kingdom. This acquisition led to Airbnb becoming the largest website in the tourist peer to peer accommodation sector in this country. In 2012 the group also acquired NabeWise which is a tourism guide and extended its offer to the local recommendations of visitors. In the same year the company also acquired Localmind, a question/answer platform that authorised its users to post and respond to questions relating to specific places.
The Airbnb Company actually made its IPO onto the Wall Street stock markets on the 20th December 2020. This operation began with a quoted price of $146 per share on the Nasdaq representing a rise of 115% on its introduction onto the stock markets. At the end of its first day of trading Airbnb boasted a stock market capital of over 100 billion dollars.
It is of course possible to buy Airbnb shares online through a broker or other financial entity. Since its initial introduction onto the Nasdaq stock market the Airbnb share price has also become available for trading through financial derivatives using the CFD online brokers thus enabling investors to speculate on a possible rise or fall in its price without the need to actually buy the shares.
The price of an Airbnb share varies according to fluctuations in the stock market and supply and demand. There is therefore no fixed price for buying Airbnb shares. The price of a share can change at any time depending on economic, financial or political news, as well as the company's performance. If you want to buy Airbnb stock, you can use an online broker or an online trading platform that will allow you to see the price in real time and place buy or sell orders according to your goals and budget. It is important to remember that investing in the stock market is risky and share prices can fluctuate considerably depending on economic and political events, as well as company performance.
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. {etoroCFDrisk}% of retail CFD accounts lose money. You should consider whether you can afford to take the high risk of losing your money.
Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.
Copy trading is a portfolio management service, provided by eToro (Europe) Ltd., which is authorised and regulated by the Cyprus Securities and Exchange Commission.
Cryptoasset investing is unregulated in some EU countries and the UK. No consumer protection. Your capital is at risk.
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.
