COMPANY PROFILE

Airbnb was born in 2007 when two Hosts welcomed three guests to their San Francisco home. It has since grown to 4 million Hosts who have welcomed more than 1 billion guest arrivals across over 220 countries and regions. Every day, Hosts offer unique stays and one-of-a-kind activities that make it possible for guests to experience the world in a more authentic, connected way.

Recent Record Earnings

12/31/21 Update

First, the stock is very expensive relative to peers in the travel space. It is what it is and that’s why we have Expedia (VRBO) and CZR (vegas). Airbnb is THE travel platform that dominates the world, at least for now. The larger the scale gets, the taller the moat becomes. ABNB has the opportunity to grow fast, and without the massive spending that other peers must do to keep up. Having a brand that everyone knows and that has become the first brand where travel searches begin is a wonderful economic moat for any business. There are always risks in every business and this business certainly has regulatory risks as HOA’s and communities push back on vacation rentals in residential neighborhoods. But if you have stayed at hotel lately, you’ll know the prices are astronomical, the services are few and far between and the costs for everything at the hotel are out of control. These all will just drive consumers to try the home sharing business just to compare and contrast. That will put pressure on hotels to get the businesses in order and try and build back some loyalty. Personally, I prefer to stay in a house vs a hotel room but I know people love the amenities with a hotel. The luxury hotels are not at risk imo but the run of the mill hotels and motels should be under serious assault with the exception of the short stay period where the fees at ABNB/VRBO are too expensive for under 3 day stays. Bottom line: when this model scales, it is hella profitable and thats what I see in store for ABNB. This theme is only getting stronger.