Airbnb offers a variety of hospitality options, from entire homes to unique stays and experiences. With their industry trend of renting and sharing, they are in-trend with Generations Y and Z. They do not want to own- they want to share. It is not about where they stay for the night, it is also about the experience that comes with it. Airbnb is offering that. Airbnb provides share of usage and experiences, which includes countless activities with different factors considered (price, location, time duration, type).
Looking at their income statement, their revenue increased from $2.6B (2017) to $4.8b (2019). However, their net income is decreased from $-70.0m to $-674.3m. This indicates that their expense also increased. However, considering the current pandemic, tourism decreased by 42% in 2020. Their revenue went down 32% in 2020, to $2.5b. It is expected that the industry will continue to be negatively affected in 2021 due to the slower than expected vaccination progress.
Based on their financial factors including income and balance sheets, the stock trading at $181.87 is overvalued. Especiaqlly with the unknown future situations with the tourism industry. However, the indsutry trend and future potential of Airbnb are bright that longterm investors who truly belive in the value of Airbnb should invest and hold the stock.