Airbnb Stock Surge as CEO aims to turn the app into “Amazon” for travel and life
airbnb (abnb) CEO Brian Chesky said he wanted to create more vacation home marketplace apps than destinations for those seeking a place to stay, which caused stocks to skyrocket over 14% on Friday. did.
“I want the Airbnb app. It’s similar to Amazon (amzn), to be a place to suit all your travel and living needs,” Chesky said during a conference call after the company’s revenues on Thursday. “
Among them Shareholder letter On Thursday, the company announced plans to launch “one or two companies” adjacent to travel each year for the next four to five years.
Chesky didn’t provide details on which specific businesses will be launched, but Amazon’s (amzn) First we started selling books, then we started selling DVDs and CDs.
Chesky noted that Airbnb is used on 1.6 billion devices a year. People usually use the app once or twice a year. He wants to raise that rate once or twice a week.
Airbnb said launching and scaling new businesses around the app would require an investment of between $200 million and $250 million, which would affect short-term margins.
“While ABNB is encouraged to have a strong start through 2025, the margin is expected to have 200bps and new business and experience, with execution risk,” JP Morgan analysts on Friday said. I am writing. The company has reaffirmed its equity neutral rating and its price target of $160.
Meanwhile, Jeffreys analyst John Colantuni recommended holding the stock with a price target of $165.
“We prefer to stay on the sidelines until we gain great visibility into the timing of contributions from new products and sponsored lists,” he said.
Airbnb’s revenues for the fourth quarter increased 12% year-over-year to $2.48 billion, beating the expectations of analysts of $2.42 billion.
Total bookings also rose 14% to $17.6 billion, more than Wall Street’s expectations.
Ines Ferre is a senior business reporter for Yahoo Finance. Follow her with X @ines_ferre.
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