Airbnb Presents an Attractive Investment Opportunity, Says Bernstein Analyst

Shares of Airbnb Experience a Decline, Creating a Buying Opportunity

According to Bernstein analyst Richard Clarke, the recent decline in Airbnb’s share price makes it an attractive investment opportunity for those seeking a high-quality growth company. In a note to clients, Clarke stated that the bearish concerns have been largely discredited after the second quarter.

Potential Upside and Catalysts for Growth

Clarke believes that there is a potential for more than 30% upside in Airbnb’s share price. He expects an acceleration in the second half of the year as competitors slow down and anticipates key revenue announcements in 2024. Despite a 13% slump in share price since the beginning of the month, Airbnb has seen a 55% rally for the year.

Bullish Outlook on Airbnb’s Long-Term Prospects

Despite the recent stumble, Clarke remains optimistic about Airbnb’s long-term outlook. He considers the company to have a strong competitive advantage, flexibility, and significant growth in both top and bottom-line performance.

Airbnb’s Value Proposition in Comparison to Booking Holdings

While Airbnb may seem expensive in the short term, Clarke argues that it becomes increasingly affordable when considering the revenue potential from additional opportunities. He compares Airbnb to Booking Holdings and states that Airbnb’s free cash flow yield should align with Booking Holdings by 2024 and surpass it by 2025.

Source: ‘s Michael Bloom contributed reporting.