Airbnb (ABNB) Stock Forecast & Price Target

Airbnb demonstrated strong financial performance in 2024, with net sales revenue rising by 11.95% year-over-year, reaching $11.10 billion. The company's gross booking value (GBV) for Q4 increased by 13% year-over-year to $17.6 billion, driven by a rise in nights and experiences booked, alongside a modest increase in average daily rates. Continued growth in in-app bookings, which now account for 60% of nights booked, coupled with an expansion in services and advertising-driven revenue, further underpins Airbnb's positive financial outlook.

Airbnb's Return on Capital (ROC) experienced a significant decline from 61.44% to 32.49% year-over-year, attributed to a 46.23% drop in Net Operating Profit After Tax (NOPAT), which fell from $4.99 billion to $2.68 billion. Concurrently, Economic Profit (EP) also decreased by 54.63% year-over-year, dropping from $4.34 billion to $1.97 billion. The company faces various challenges, including significant foreign exchange impacts and headwinds from its expansion beyond its core business, which could threaten its long-term valuation and financial objectives.