Airbnb (NASDAQ: ABNB) reported a loss of $3.89 billion for its fourth quarter. This translates into an $11.24 per share loss which is mostly driven by high IPO charges. The company went public in December.
ABNB generated a revenue of $859 million to top the $748 million expected from the market. It also reported 46.3 million nights and experiences booked, which is a decline of 39% compared to a year ago. The company generated $5.9 billion from gross booking value, representing a fall of 31% YoY.
“Our performance in 2020 showed that Airbnb is resilient and inherently adaptable. Travel is coming back and we are laser-focused on preparing for the travel rebound,” Airbnb co-founder and CEO Brian Chesky said.
On guidance, ABNB said it expects “to have limited visibility for growth trends in 2021 given the difficulty in determining the pace of vaccine roll-outs and the related impact on willingness to travel.”
“ABNB generally reported a solid quarter out of the gate and remains bullish on the long-term opportunity. We continue to see the travel recovery as bumpy and slow, but believe ABNB is a must-own name for the recovery, which should likely start to play out this year,” Susquehanna analyst Shyam Patil wrote in a note.
Patil has a “Positive” rating on ABNB with a price target of $225.00. He calls ABNB a “must-own recovery stock.”
Credit Suisse analyst Stephen Ju left the “Neutral” rating unchanged but raised the PT to $162.00 from $156.00 to reflect near-term estimates.
“Circumstances which could push us to take a more constructive stance on ABNB shares include the following: 1) faster than expected substitution effect from traditional hotels to alternative accommodations for the travel industry as a whole, 2) faster or meaningful share gains within the alternative accommodations category, 3) optionality from rising monetization through payments and/or advertising,” he said in a memo sent to clients.
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