Key takeaways
- Compare Australian share trading platforms that let you buy US-listed stocks like Airbnb and check for low brokerage and FX fees to keep costs down.
- Use fractional share options to start investing in Airbnb with a smaller amount and grow your position over time.
- Track Airbnb's performance against travel industry peers and broader market trends to decide whether it fits your long-term investment goals.
Airbnb (ABNB) is an online platform that connects hosts in over 191 countries with travelers seeking local accommodations. Travelers can search for places to stay by numerous filters and metrics, relying on listing details and the feedback of fellow travelers to narrow down their options. The company was founded in 2008 and is headquartered in San Francisco, USA. Airbnb's IPO went live in December 2020 and its stocks are listed on the Nasdaq.
How to buy shares in Airbnb
- Compare share trading platforms. To buy shares in a company listed in the US from Australia you'll need to find a trading platform that offers access to US stock markets. Look for a platform with low brokerage and foreign exchange fees.
- Open and fund your brokerage account. Complete an application with your personal and financial details, which will typically include your ID and tax file number. Fund your account with a bank transfer, credit card or debit card.
- Search for Airbnb. Find the share by name or ticker symbol: ABNB. Research its history to confirm it's a solid investment that matches your financial goals.
- Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Airbnb reaches your desired price. To spread out your risk, look into dollar-cost averaging, which smooths out buying using consistent intervals and amounts.
- Decide on how many to buy. At last close price of US$116.99, weigh your budget against a diversified portfolio that can minimise risk through the market's ups and downs. You may be able to buy a fractional share of Airbnb, depending on your broker.
- Check in on your investment. Congratulations, you own a part of Airbnb. Optimise your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights.
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Use the fields above to explore the returns from a historical investment. Please refer to the charts further up this page to see performance over 5 years, or other periods. Past performance doesn't indicate future results. Capital is at risk.
Is it a good time to buy Airbnb stock?
The technical analysis gauge below displays real-time ratings for the timeframes you select. However, this is not a recommendation. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
Is it worth buying Airbnb stock?
Valuing Airbnb stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Airbnb's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
Airbnb's P/E ratio
Airbnb's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 28x. In other words, Airbnb shares trade at around 28x recent earnings.
That's comparable to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29).
However, Airbnb's P/E ratio is best considered in relation to those of others within the travel services industry or those of similar companies.
- Carnival Corporation (CCL.US): 13.39
- Delta Air Lines (DAL.US): 9.04
- Expedia Group (EXPE.US): 24.63
Airbnb's PEG ratio
Airbnb's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 1.5681. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Airbnb's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
However, it's sensible to consider Airbnb's PEG ratio in relation to those of similar companies.
- Carnival Corporation (CCL.US): 1.41
- Delta Air Lines (DAL.US): 39.29
- Expedia Group (EXPE.US): 0.72
Airbnb's EBITDA
Airbnb's EBITDA (earnings before interest, taxes, depreciation and amortisation) is US$2.8 billion (£2.1 billion).
The EBITDA is a measure of a Airbnb's overall financial performance and is widely used to measure stock profitability.
To put Airbnb's EBITDA into context you can compare it against that of similar companies.
- Carnival Corporation (CCL.US): USD$7 billion
- Delta Air Lines (DAL.US): USD$8 billion
- Expedia Group (EXPE.US): USD$2.2 billion
Airbnb share price volatility
Over the last 12 months, Airbnb's shares have ranged in value from as little as US$99.88 up to US$163.93. A popular way to gauge a stock's volatility is its "beta".
Beta measures a share's volatility in relation to the market. The market (NASDAQ average) beta is 1, while Airbnb's is 1.112. This would suggest that Airbnb's shares are a little bit more volatile than the average for this exchange and represent, relatively speaking, a slightly higher risk (but potentially also market-beating returns).
To put Airbnb's beta into context you can compare it against those of similar companies.
- Carnival Corporation (CCL.US): 2.527
- Delta Air Lines (DAL.US): 1.387
- Expedia Group (EXPE.US): 1.457
Airbnb financials
| Revenue TTM | US$11.9 billion |
|---|---|
| Operating margin TTM | 39.68% |
| Gross profit TTM | US$9.9 billion |
| Return on assets TTM | 7.48% |
| Return on equity TTM | 30.78% |
| Profit margin | 22.03% |
| Book value | 14.161 |
| Market capitalisation | US$71.6 billion |
| EBITDA | US$2.8 billion |
TTM: trailing 12 months
Airbnb overview
Airbnb, Inc., together with its subsidiaries, operates a platform that enables hosts to offer stays and experiences to guests worldwide. Its marketplace connects hosts and guests online or through mobile devices to book spaces and experiences. It also offers gift cards. The company was formerly known as AirBed & Breakfast, Inc. and changed its name to Airbnb, Inc. in November 2010. Airbnb, Inc. was founded in 2007 and is headquartered in San Francisco, California.
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