Airbnb stock increasing because the executive director wants to make the ‘Amazon’ travel and life app
Airbnb (Abnb) The shares on Friday increased more than 14% after the earnings, as the CEO Brian Chesky said that he wanted to make a vacation application more than a destination for people looking for a place to stay.
“We want the Airbnb app, similar to Amazon (AMZN), to be one place you are going to all your travels and life needs, “Chesky said during a conference call of the company after earning Thursday.” The place to stay is, honestly, a very small part of the whole equation. “
In your own a letter to a shareholder On Thursday, the company posted plans to start “One or several companies” with a trip each year in the next four or five years.
Chesky did not give details about which special companies will start but noticed Amazonovo (AMZN) The path, which first started selling books, then DVD and CD -IVE.
Chesky noted that Airbnb was using 1.6 billion devices a year. People usually use the application once or twice a year. I would like to increase that rate at one or twice a week.
Airbnb said it would require an investment of $ 200 to $ 250 million to start and scaling about the application, which will affect short -term margins.
“Although we are encouraged by the strong start to the ABNB by 2025, it is expected that margins will compress as many as 200bps and new companies, including experiences, come with the risk of execution,” JPMORGAN analysts wrote on Friday. The company re -confirm its neutral rating and a targeted price of $ 160 on a section.
Meanwhile, Jefferies’ analyst John Colanonuti recommended a shares retention, with the aim of price of $ 165.
“We prefer to stay on the side until we get greater visibility of contributing new products and time for sponsorsed lists,” he said.
Airbnba’s revenue in the fourth quarter jumped 12% compared to the year to $ 2.48 billion, beating the expectations of analysts in the amount of $ 2.42 billion.
The gross reservations also jumped to $ 14% to $ 17.6 billion, which is higher than expectations on Wall Street for $ 17.19 billion.
Ines Ferre is a senior business journalist for Yahoo Finance. Follow her on x on @ines_ferre.
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