We came across a bullish thesis on Airbnb, Inc. on Investing With Purpose’s Substack. In this article, we will summarize the bulls’ thesis on ABNB. Airbnb, Inc.’s share was trading at $125.47 as of September 18th. ABNB’s trailing and forward P/E were 30.45 and 25.58, respectively according to Yahoo Finance.
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Airbnb, Inc. (ABNB) is one of the most recognized travel brands globally, having evolved from a pandemic-era high-growth disruptor into a strong cash-generating platform. The company benefits from a pristine balance sheet, with $8.3 billion in net cash, high liquidity ratios, and record free cash flow of $4.48 billion in 2024. Its business generates high-quality margins, including a 71.5% gross margin, 23% operating margin, and 40% FCF margin, reflecting operational efficiency and resilience. Revenue grew 11.9% year-over-year in 2024, with nights and experiences booked up 9%, and gross bookings projected to rise from $81.8 billion to approximately $104 billion by 2026.
Despite these strengths, Airbnb faces margin pressures and slowing earnings. Net income declined from $4.79 billion in 2023 to $2.65 billion in 2024, while EPS fell from $7.24 to $4.11, driven by non-operating items, fading tax tailwinds, and share-based compensation dilution. Valuation remains elevated, with a P/E of 32x and EV/EBITDA of 28x, pricing in expectations of continued EPS growth that may not materialize given the maturing platform model. Consensus projects only 11% EPS CAGR through 2027, suggesting limited upside relative to current market pricing.
Technically, the stock is under pressure. Key support at $132 has broken, with resistance near $145–147, bearish MACD crosses, and downward RSI divergence signaling risk of further downside to $125–118 if support fails. While Airbnb’s fundamentals make it a high-quality business, the combination of slowing growth, high valuation, and weak technicals warrants caution. Investors may consider accumulation only on pullbacks below $120 or on a confirmed breakout above $147, highlighting the need for patience and strategic entry in a platform that is strong but currently overextended.
Previously we covered a bullish thesis on Airbnb, Inc. (ABNB) by Chit Chat Stocks in May 2025, which highlighted the company’s expansion of Experiences and Services to deepen user engagement and broaden its value proposition beyond accommodations. The company’s stock price has depreciated approximately by 8.27% since our coverage. This is because the thesis played out partially, while Investing With Purpose shares a similar perspective but emphasizes Airbnb’s transition to a cash-generating platform with strong margins and a focus on slowing earnings and valuation caution.