Airbnb, Inc. (ABNB): A Bull Case Theory 

We came across a bullish thesis on Airbnb, Inc. on Rebound Capital’s Substack. In this article, we will summarize the bulls’ thesis on ABNB. Airbnb, Inc.’s share was trading at $131.55 as of January 28th. ABNB’s trailing and forward P/E were 31.48 and 26.81, respectively according to Yahoo Finance.

Airbnb, Inc. (ABNB) has established itself as the leading platform for short-term rentals and travel experiences, yet the stock has largely stagnated over the past five years. Following its blockbuster IPO, the stock surged to $212 before declining to the low $80s, reflecting a 46% drawdown from its peak. Despite this, Airbnb’s core business has continued to grow impressively. Revenue is projected to nearly double from $6 billion in 2021 to $12 billion in 2025, driven by both its traditional “nights” bookings and its rapidly expanding “Experiences” segment, which allows local experts to host immersive activities.

Notably, almost half of all Experience bookings are made independently of room reservations, signaling that Airbnb is creating an entirely new market rather than merely cross-selling to existing customers. The company maintains industry-leading margins, with FY2024 gross margins at 83% and EBITDA margins at 37%, supported by a low-capital model and a strong $10 billion cash balance with minimal debt. Airbnb’s moat remains robust, anchored by its two-sided network effect, massive brand recognition, and unique inventory model that emphasizes diverse and longer-stay listings.

The stock’s underperformance has been largely due to an overhyped IPO, post-pandemic demand normalization, and macroeconomic concerns about discretionary travel. Current market pricing appears to underestimate Airbnb’s leverage over its hosts and the growth potential of its Experiences segment. With strong free cash flow, a founder-led management team, and a growing service ecosystem that expands beyond traditional lodging, Airbnb presents a compelling investment opportunity for those recognizing the mispricing of its evolving business model.

Previously, we covered a bullish thesis on Airbnb, Inc. (ABNB) by Chit Chat Stocks in May 2025, which highlighted the expansion of Experiences and Services to deepen user engagement and broaden Airbnb’s value proposition beyond accommodations. ABNB’s stock price has depreciated by 3.83% since our coverage. Rebound Capital shares a similar view but emphasizes Airbnb’s growing standalone Experiences market, industry leading margins, and strong network effects.

Airbnb, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 71 hedge fund portfolios held ABNB at the end of the third quarter which was 79 in the previous quarter. While we acknowledge the risk and potential of ABNB as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ABNB and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.