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ABNB Airbnb, Inc. - Fundamental Analysis

NEUTRAL
ABNB Stock | Fundamental Analysis & Investment Insights
NASDAQ Consumer Cyclical Travel Services
Current Price
$133.01
Analyst Target
$140.49
+5.6% Upside
52W High
$163.93
52W Low
$99.88

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Confidence Score
75%
Analysis Accuracy
The Advanced Deterministic Scorecard shows a weak Piotroski F-Score of 4/9, indicating borderline financial health, while the Altman Z-Score is astronomically high at 118.77 billion, suggesting no distress risk. Airbnb trades at a premium valuation with a P/E of 31.67 despite solid profitability metrics like a 39.68% operating margin and 30.78% ROE. However, slowing earnings growth, insider selling pressure, and mixed quarterly earnings performance temper optimism. The stock is priced above both the Graham Number ($36.58) and intrinsic value estimate ($53.34), reflecting high market expectations that may not be fully supported by near-term fundamentals.

Key Strengths

Exceptionally high Altman Z-Score indicates virtually no bankruptcy risk
Strong profitability with 39.68% operating margin and 30.78% ROE
Low debt/equity ratio of 0.26, indicating conservative capital structure
High gross margin of 83.04%, reflecting strong pricing power and scalable platform model
Revenue growth of 9.7% outpaces some peers in the travel sector

Key Risks

Piotroski F-Score of 4 suggests weak financial health, particularly in earnings consistency and leverage trends
Valuation premium: P/E of 31.67 exceeds sector average and growth rate, increasing downside risk
Insider selling activity: $79.7M in net sales over last 6 months signals bearish sentiment from insiders
Earnings growth slowdown: YoY EPS growth at only 3.8% despite strong Q/Q rebound
Mixed earnings surprise history with several significant misses, including a -178.6% surprise in early 2024
AI Fair Value Estimate
Based on comprehensive analysis
$53.34
-59.9% below current price

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