Airbnb: Buy The Dip At Attractive FCF Multiples (Upgrade)
Summarize this article with:
Gary Alexander32.8K FollowersFollow5ShareSavePlay(10min)CommentsSummaryAirbnb is upgraded to Buy as bookings rebound, free cash flow surges, and valuation becomes attractive after recent underperformance.ABNB delivers 14% y/y gross bookings growth, outpacing most OTA peers, with product enhancements and flexible policies fueling demand acceleration.Expansion into services and disciplined share repurchases support long-term growth and shareholder value, with fully diluted share count down 3% y/y.At 14.3x FY26 EV/EBITDA and 13.6x EV/FCF, ABNB offers growth at a reasonable price, trading at a discount to Booking.com.Thomas Barwick/DigitalVision via Getty Images It's been a tricky stock market to invest in this year, and 2026 is likely to be no different. While on paper the S&P 500 has soared double digits this year, gains have been concentrated only in aThis article was written byGary Alexander32.8K FollowersFollowWith combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on Seeking Alpha since 2017. He has been quoted in many web publications and his articles are syndicated to company pages in popular trading apps like Robinhood.Analyst’s Disclosure:I/we have a beneficial long position in the shares of ABNB either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You