(NASDAQ: GOOGL), Alibaba Group Holding Ltd. If a vaccine-resistant version of the virus develops and causes more shutdowns, Airbnb will see waves of selling in its stock.Īirbnb's success could end up hurting it as Inc. If we fall short of the level of vaccination needed to create herd immunity and travel remains limited, the stock will see aggressive selling. If anything goes wrong with the best-case scenario, this stock will get hammered. So could a higher-than-expected number of hosts being added to the network.Īs long as the news stories are talking about the fast-arriving explosion of travel, there is a chance this stock could catch traders' interest and move higher. Revenue surprises in the earnings reports due out for the rest of the year could ignite a spark under the stock as well. More than 10 times next year's hoped-for revenue is a big number.Īs we get closer to a level of vaccination that allows for the full return of leisure travel, we could see Airbnb stock respond with a move higher in spite of the premium valuation. The current market cap is over $70 billion. Analysts are hoping that it does a little over $6 billion in revenue next year. It will be unprofitable next year as well. No competing alternative accommodations company can even come close.Īs long as Airbnb recognizes the importance of growing that hosting network, it will dominate this travel market segment for a very long time.

Its network of hosts can offer rentals in 220 countries and 100,000 cities. It has spent over a decade doing all the blocking and tackling to put together a network of hosts worldwide that none of its competitors can match.įrom one apartment in San Francisco back in 2007, Airbnb has grown into a global network of over 4 million hosts worldwide. There is a significant chance that the travel surge is already priced into shares of Airbnb.Īirbnb has the early mover advantage on alternative travel accommodations.

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