Airbnb Stock Pulls Back to Support – Smart Entry?
Airbnb (ABNB) stock should be on your watchlist. Here is why – it is currently trading in the support zone ($116.23 – $128.47), levels from which it has bounced meaningfully before. In the last 10 years, Airbnb stock received buying interest at this level 6 times and subsequently went on to generate 40.3% in average peak returns.
| Peak Return | Days to Peak Return | |
|---|---|---|
| 12/15/2020 | 73.8% | 58 |
| 7/19/2021 | 57.1% | 119 |
| 6/26/2023 | 24.5% | 32 |
| 11/3/2023 | 37.1% | 139 |
| 9/17/2024 | 32.2% | 150 |
| 4/9/2025 | 17.2% | 110 |
But is the price action enough alone? It certainly helps if the fundamentals check out. For ABNB Read Buy or Sell ABNB Stock to see how convincing this buy opportunity might be.
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Here are some quick data points for Airbnb that should help decision:
- Revenue Growth: 10.2% LTM and 16.3% last 3 year average.
- Cash Generation: Nearly 37.2% free cash flow margin and 22.5% operating margin LTM.
- Recent Revenue Shocks: The minimum annual revenue growth in last 3 years for ABNB was 10.2%.
- Valuation: ABNB stock trades at a PE multiple of 28.7
For quick background, Airbnb provides a platform connecting hosts and guests worldwide to book stays and experiences online or via mobile devices.
| ABNB | S&P Median | |
|---|---|---|
| Sector | Consumer Discretionary | – |
| Industry | Hotels, Resorts & Cruise Lines | – |
| PE Ratio | 28.7 | 23.7 |
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| LTM* Revenue Growth | 10.2% | 5.6% |
| 3Y Average Annual Revenue Growth | 16.3% | 5.3% |
| Min Annual Revenue Growth Last 3Y | 10.2% | -0.0% |
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| LTM* Operating Margin | 22.5% | 18.8% |
| 3Y Average Operating Margin | 19.7% | 18.2% |
| LTM* Free Cash Flow Margin | 37.2% | 13.4% |
*LTM: Last Twelve Months
What Is Stock-Specific Risk If The Market Crashes?
Airbnb isn’t immune to big hits. It plunged about 14% during the Covid sell-off and took a much steeper fall, nearly 62%, in the inflation shock of 2022. Even with strong fundamentals and growth potential, these drops show the stock can still take a serious beating when conditions sour. It’s a reminder that no matter the background, volatility is part of the ride.
But the risk is not limited to major market crashes. Stocks fall even when markets are in good shape – think events like earnings, business updates, outlook changes. Read ABNB Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.
The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.