A caller on the August 26 episode of Mad Money highlighted local neighbors abandoning Airbnb over a forthcoming change that shifts guest fees directly in listing prices. They asked if they should dump their 5% Airbnb, Inc. (NASDAQ:ABNB) holdings and invest in Toll Brothers. Jim Cramer replied:
Well, I do like Toll Brothers very much, but I have to tell you, I think you’re an outlier. As I know, the Jersey beaches, they’re always trying to figure out how to stop the party houses; I wouldn’t worry. Internationally, Airbnb is smoking it. I say you stay long that stock.
Strong Results Support Cramer’s Growth Argument
Airbnb, Inc.’s (NASDAQ:ABNB) second-quarter revenue rose 17% year over year to $3.6 billion, while gross booking value increased 16% to $27.2 billion and nights and seats booked grew 10% to 148.3 million. Net income reached $816 million, adjusted EBITDA rose 21% to $1.3 billion, and free cash flow was about $1.3 billion. Management raised its 2026 outlook to at least 15% revenue growth and an adjusted EBITDA margin of at least 35.5%.
International growth remains important to the thesis. Airbnb reported stronger growth across major markets, while hotel nights are growing about three times faster than its home business. Hotels still account for a single-digit percentage of total nights, but about 35% of first-time guests who book a hotel on Airbnb later return to book a home.
Management also reported a 16% year-over-year decline in customer-support costs per booking, helped by its AI assistant, which resolves nearly 45% of issues that begin with it without human intervention. However, the new 15.5% host-paid fee remains a risk because higher listing prices remains a potential host-retention risk.
Bear Case
The bigger risk is that Airbnb, Inc.’s (NASDAQ:ABNB) stock has already priced in much of the recent improvement. Shares closed at $188.07 on August 26, just below the $193.45 52-week high reached on August 24. At that price, it trades at roughly 35 to 36 times forward earnings, based on current market-data estimates. That valuation leaves less room for a slowdown in bookings, margins, or international demand. Furthermore, regulation adds another risk. Short-term-rental restrictions can reduce available listings in individual markets, while hotels and online travel agencies remain significant competitors.
Hedge Fund Ownership Fell, While Short Interest Remains Low
Institutional positioning provides a more cautious signal. According to Insider Monkey, 75 hedge funds held ABNB in the second quarter of 2026, down from 87 in the first quarter. Moreover, Insider Monkey’s data shows that over the past few quarters, Harris Associates was the biggest hedge fund shareholder tracked by Insider Monkey with approximately 18.9 million shares in Q2. It is worth noting that short interest offers less evidence of bearish conviction. Multiple market data providers put short interest at roughly 3% of float, and that level indicates limited bearish positioning rather than aggressive speculative bearishness.
Cramer’s bullish case depends on whether Airbnb, Inc. (NASDAQ:ABNB) can sustain its international growth while absorbing regulatory and pricing pressures. The second-quarter results support that view, but the stock’s roughly 35-times-forward-earnings valuation means continued execution is essential.
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