AIRBNB

Analysis of Airbnb share price

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If you are planning to launch into speculating online on the Airbnb share price that recently became available on the stock markets then you should read the useful information and data that we provide in this dedicated article to assist you with your analyses of this asset and thereby anticipate future trends. You will notably find information on this page about the activities and sources of revenue of this company as well as a presentation of its major competitors, recent partnerships and information you should take into consideration when preparing a fundamental analysis of this asset.

Elements that can influence the price of this asset:

Analysis N°1

Firstly we would closely monitor changes in regulations affecting accommodation of the type available on Airbnb. These factors could slowdown or boost rentals on this website and therefore this company’s activities. This notably concerns the taxes that individuals have to pay relating to the rental of their accommodation or annual rental limits.

Analysis N°2

We would also follow closely the development of new functions and new technology by Airbnb that facilitate the rental of accommodation available or equally the administrative side for those who rent the accommodation. This was notably the case with the launch of Airbnb Plus which is a form of hotel platform for those who do not use the classic Airbnb system.

Analysis N°3

The same is true for the diversification of the group’s activities which do not uniquely focus on accommodation and this company has already started to invest in a restaurant platform and visits through Airbnb Experiences.

Analysis N°4

The threats from local authorities can also influence the activities of Airbnb in certain countries.

Analysis N°5

We would also keep an eye on the competition that this company faces, notably relating to the larger groups originally specialised in classic hotel services that are trying to position themselves in this sector due to the significant growth in this sector during recent years.

Analysis N°6

Finally, we would also follow the financial and economic publications and announcements of the Airbnb Group including the annual and quarterly results that should preferably be compared to the figures anticipated by analysts and the objectives fixed by the company itself.

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General presentation of Airbnb

To increase your ability to analyse the Airbnb share price we now offer you a detailed presentation of this company and its activities. This will assist you in understanding its future challenges and how this group can face threats and increase its growth.

The Airbnb Group was previously known as ‘Airbed and Breakfast’, an American company that was basically a platform for community services relating to payable rental accommodation between individuals. This company was originally created in 2008 and has greatly developed since then, nowadays it boasts several million accommodation announcements and is present in over 190 different countries worldwide.

This small company thereby became the Airbnb Inc. Group that made its entry onto the New York stock market in December 2020. Its registered Office is in San Francisco in the United States. Concerning the European activities of Airbnb, these are exercised through the subsidiary Airbnb Ireland Private Unlimited Company Dublin which is an Irish company.

The economic model of Airbnb is simple as this company enables individuals to rent all or part of their accommodation as seasonal or occasional guest accommodation. The website offers services through its platform for users to find and reserve accommodation directly with the accommodation host. Since its creation dozens of millions of nights’ accommodation have been reserved through the use of this platform.

Since 2016 the Airbnb Group has been seeking to diversify its services through notably offering travellers certain experiences and places. The Experience service enables residents to share their social life, interests and work. Regarding the Places service this includes details on the places that are recommended according to specific criteria and are offered by expert guides of the place concerned.

Analysis of Airbnb share price
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The major competitors of Airbnb

Of course, when Airbnb created this model of touristic accommodation it stirred up a lot of interest in this market for some significant players in this market. Here are details of its major competitors that you should follow for your analyses:

Expedia 

This American company from Seattle operates several online travel agencies including Expedia.com, Hotels.com and Hotwire.com. It operates over 90 points of sale for its various brands in over 60 countries around the world and also provides travel reservation services for various airlines and hotels as well as brands well known to the general public and websites with high traffic. This company is quoted on the American S & P 500 stock market index and recently positioned itself in the same sector as Airbnb through the acquisition of the company Homelidays which is also specialised in seasonal rental accommodation between individuals.

Booking

This Dutch company and website also offers accommodation online with various properties available including hotels and guesthouses, as well as private accommodation such as with Airbnb. Its website is available in 43 different languages and is based in Amsterdam. It actually belongs to the American group Priceline since its acquisition in 2005. Booking is currently present in around 60 different countries and employs over 7,000 people around the world. It offers accommodation in over 540,000 properties in 202 different countries. Its economic model is not based on the invoice of reservation fees but is financed through commission that is invoiced directly to the providers of accommodation.


The major partners of Airbnb

Paris

In 2020 the group announced that it was sponsoring the Olympic Games in Paris in 2024 which provoked a scandal. According to an announcement relating to the latter, the rental platform would become the major sponsor of the International Olympic Committee until 2028. This agreement was seen as an insult to the Parisian capital and the elected officials fought with Airbnb for a number of weeks regarding the requirement to possess a registration number to rent accommodation. Airbnb however contests the validity of the Parisian regulations applicable to them that are also applied by other countries.

STB

 Still in 2020 the group also implemented a strategic partnership with the Singapore Tourist Board through its subsidiary Airbnb Experiences with the aim of promoting high quality travel experiences in Singapore and promoting companies related to the Singapore Tourist Board to moving into the digital world and thereby become integrated with innovative hybrid commercial models. Through this partnership Airbnb and the STB can continue to offer quality experiences to international tourists in the current touristic context. The Airbnb platform has in fact dedicated a new page to this destination with the objective of presenting a collection of emblematic virtual experiences of this city-state.

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The factors in favour of a rise in the Airbnb share price:

To be able to best evaluate the abilities of the Airbnb Group to face the future, accelerate its growth and overcome certain threats, you need to understand the major advantages and disadvantages of this company.

Concerning the strong points of this group we particularly note the following:

  • Firstly, the Airbnb Group has all it needs to position itself as a reputable and renowned brand with the consumers, notably due to its procedure including identity verification as well as its policy of reviews from the users and hosts.
  • The pricing strategy of the Airbnb Company, which is directly competitive to the hotels, is also clearly a great advantage for this group and enables it to remain competitive.
  • Numerous investors are also expressing interest in investing and buying shares in this company due to its strong global presence and high value.
  • Airbnb also benefits from fairly low operational costs as its business model is entirely online. Also, this model enables the company to generate revenue from the hosts as well as the final users.
  • Finally, the strong global demand for this type of services provides this company with a great potential for growth.


 

The factors in favour of a drop in the Airbnb share price:

Concerning the weaknesses of this company we note the following factors:

  • Firstly we note the legal and regulatory problems this company has experienced relating to accommodation. It is in fact illegal in certain countries to rent an apartment for less than 30 consecutive days if the apartment is already under a long term rental contract.
  • The group could also see its reputation tarnished by less reputable hosts that receive negative reviews as Airbnb has no control over these users’ services.
  • Finally, Airbnb could also soon face strong competition due to its online business model that is easy to reproduce.
The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions.

Frequently Asked Questions

What acquisition operations has the Airbnb Company completed?

Airbnb has acquired a number of its competitors including Accoleo in Hamburg and CrashPadder in the United Kingdom. This acquisition led to Airbnb becoming the largest website in the tourist peer to peer accommodation sector in this country. In 2012 the group also acquired NabeWise which is a tourism guide and extended its offer to the local recommendations of visitors. In the same year the company also acquired Localmind, a question/answer platform that authorised its users to post and respond to questions relating to specific places.

When were Airbnb Company shares introduced onto the stock markets?

The Airbnb Company actually made its IPO onto the Wall Street stock markets on the 20th December 2020. This operation began with a quoted price of $146 per share on the Nasdaq representing a rise of 115% on its introduction onto the stock markets. At the end of its first day of trading Airbnb boasted a stock market capital of over 100 billion dollars.

Is it possible to buy Airbnb shares online?

It is of course possible to buy Airbnb shares online through a broker or other financial entity. Since its initial introduction onto the Nasdaq stock market the Airbnb share price has also become available for trading through financial derivatives using the CFD online brokers thus enabling investors to speculate on a possible rise or fall in its price without the need to actually buy the shares.

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