1. Its margins are already huge
In the third quarter, Airbnb reported net income of $1.21 billion on $2.88 billion in revenue, giving it a 42% profit margin.
2. It has a monopoly
Airbnb has become synonymous with the home-sharing industry, it has 74% market share in home-sharing,
3. It's generating tons of cash
Over the last year, the company has reported $3.3 billion in free cash flow on $8 billion in revenue, or a free-cash-flow margin of 41%.
4. The business model is a dream
Airbnb takes the user-created content model that's been so successful on the internet one step further
6. It has a bonus income stream
While most of the money Airbnb makes comes from commissions and fees on stays and experiences
7. It can adapt to a recession
The travel sector typically is highly cyclical. Consumers spend more on vacations when they have the money,
8. It has a huge addressable market
Airbnb's gross booking value, or the dollar value of its bookings, reached $61.1 billion over the last four quarters
9. The management team is strong
When Airbnb laid off a quarter of its staff early in the pandemic, CEO Brian Chesky was lauded for a letter he wrote to employees, explaining why the layoffs were happening and what was next for the people involved.
10. The stock is well-priced
Airbnb now trades at a price-to-earnings ratio of 42, not much more expensive than slow-growth stalwarts like Procter & Gamble and Coca-Cola.