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ABNB Airbnb, Inc. - Fundamental Analysis

BEARISH
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ABNB Stock | Fundamental Analysis & Investment Insights
NASDAQ Consumer Cyclical Travel Services
Current Price Live
$127.89
Analyst Target
$144.31
+12.8% Upside
52W High
$147.07
52W Low
$99.88

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AI Analysis

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Confidence Score
85%
Analysis Accuracy
Airbnb's Piotroski F-Score of 4/9 indicates weak financial health, signaling deterioration in operational efficiency and profitability trends. The company trades at a premium valuation (P/E 31.73, Price/Sales 6.26) relative to its current earnings decline and negative earnings growth (-23.7% YoY), despite strong gross margins and ROE. Insider selling activity totaling $81.65M over six months reflects bearish sentiment from key executives, while analyst targets remain optimistic but are not supported by recent earnings momentum. The Graham Number ($35.14) and intrinsic value ($28.21) are significantly below the current price of $127.89, indicating substantial overvaluation. The absence of an Altman Z-Score raises concern about default risk, especially given the recent earnings contraction and declining investor confidence.

Key Strengths

High gross margin of 82.96% reflects strong pricing power and scalable business model
Strong ROE of 30.23% indicates efficient use of shareholder equity
Low debt/equity ratio of 0.28 suggests conservative capital structure
Positive operating cash flow and strong current ratio (1.38) support liquidity
Historical earnings resilience with multiple quarters beating estimates, including large positive surprises

Key Risks

Piotroski F-Score of 4/9 signals weak financial health and declining operational efficiency
Negative earnings growth (-23.7% YoY) and declining EPS (Q/Q -74.7%) indicate deteriorating profitability
Significant insider selling (16 transactions, $81.65M) suggests lack of confidence from leadership
Current price ($127.89) is over 3.6x the Graham Number ($35.14) and 4.5x the intrinsic value ($28.21)
Recent earnings misses (last 4 quarters: 1 beat, average surprise -3.67%) undermine growth credibility
AI Fair Value Estimate
Based on comprehensive analysis
$35.14
-72.5% below current price

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