Expect Airbnb Stock To Rise After Its Upcoming First-Quarter Results

InvestorPlace2021-05-10

ABNB stock is worth as much as $250 per share, but more likely worth $210.28, or 28% higher based on FCF estimates. Airbnb(NASDAQ:ABNB) is in recovery mode. People are traveling more and renting out ...

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Comments

anthlow
2021-05-10
anthlow
Travel’s still far from returning to normal. But once it recovers ABNB is gonna rocket
- Stylerz:
  hopefully sooner than later
- Ronn:
  completely agree. To the moon!!!

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People are traveling more and renting out ...</p>\n\n<a href=\"https://investorplace.com/2021/05/abnb-stock-is-worth-up-to-250-based-on-fcf-forecasts-and-fcf-yield/\">Source Link</a>\n\n</div>\n","source":"lsy1606302653667","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Expect Airbnb Stock To Rise After Its Upcoming First-Quarter Results</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nExpect Airbnb Stock To Rise After Its Upcoming First-Quarter Results\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-10 19:49 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://investorplace.com/2021/05/abnb-stock-is-worth-up-to-250-based-on-fcf-forecasts-and-fcf-yield/><strong>InvestorPlace</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>ABNB stock is worth as much as $250 per share, but more likely worth $210.28, or 28% higher based on FCF estimates.\n\nAirbnb(NASDAQ:ABNB) is in recovery mode. People are traveling more and renting out ...</p>\n\n<a href=\"https://investorplace.com/2021/05/abnb-stock-is-worth-up-to-250-based-on-fcf-forecasts-and-fcf-yield/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"ABNB","symbol_name":"爱彼迎","start_time":0,"source_url":"https://investorplace.com/2021/05/abnb-stock-is-worth-up-to-250-based-on-fcf-forecasts-and-fcf-yield/","article_id":"1139361064","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=1139361064","pubTimestamp":1620647391,"sourceInfo":{"source_id":"lsy1606302653667","name":"InvestorPlace"},"weMediaInfo":null,"summary":"ABNB stock is worth as much as $250 per share, but more likely worth $210.28, or 28% higher based on","collect":0,"end_time":0,"defaultTopTitle":"investorplace.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"ABNB":"爱彼迎"},"translate_title":"预计爱彼迎股票在即将公布的第一季度业绩后将上涨","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ABNB":0.9},"content_text":"ABNB stock is worth as much as $250 per share, but more likely worth $210.28, or 28% higher based on FCF estimates.\n\nAirbnb(NASDAQ:ABNB) is in recovery mode. People are traveling more and renting out places to stay on Airbnb. And as this activity increases, its finances will recover as well, especially its return to free cash flow (FCF) profitability.\nIts upcomingfirst-quarter results on May 13should begin to show this. As a result, expect to see ABNB stock move higher, especially if analysts begin to model in positive FCF.\nAs it stands, analysts expect to see $718.86 million in revenue for Q1. This is 14.6% lower than last year’s revenue for Q1 (i.e., $841.83 million). It is also lower than revenue in Q4 of $859 million.\nAirbnb actually turns this into a positive thing by saying it expected a much higher slump in sales. That is what they did with its Q4 revenue. They said Q4 sales were down by only 22% after expecting almost a 50% decline.\nRecovery Valuation\nEventually, the company will return to full recovery. I suspect it may take the rest of this year. For example, in Dec. 2019 its highest quarterly revenue was $1.6457 billion. You can see this quarterly history onpage 70 of Airbnb’s latest 10-K filing.\nMoreover, on page 60 of the 10-K you can see that during 2018 Airbnb produced $504.9 million in FCF for the year. This worked out to 13.8% of its $3.652 billion in sales that year.\nWe can use this to estimate the company’s full recovery potential. For example, let’s assume that Airbnb eventually recovers to make $1.65 billion in sales on a quarterly basis. That works out to a $6.6 billion annual run rate. In fact, analysts covered bySeeking Alphaestimate 2022 sales will hit $6.48 billion.\nSo assuming a 13.8% margin on $6.6 billion in sales, FCF could reach $910.8 million. In fact on the high end, I suspect that FCF margins will expand by at least 50% to about 20%. That would mean Airbnb will generate $1.32 billion in free cash flow.\nThis figure can be used to estimate Airbnb’s market value. For example, at a 1% FCF yield, ABNB stock would be worth $132 billion. This is calculated by dividing $1.32 billion by 1%. Moreover, at a 0.75% FCF yield, the market cap is worth $176 billion.\nSince Airbnb presently has a market cap of $102.73 billion, this implies that ABNB stock is worth between 28.5% to 71.3% higher. That puts its value in the range of $210.44 to $280.54. Let’s call it $250.00. This is based on its ultimate recovery to peak sales and a 20% FCF margin that will likely occur with that peak revenue.\nWhat To Do With ABNB Stock\nAnalysts are uniformly bullish on ABNB stock at today’s price. For example,TipRanks.comreports that 28 analysts that have written reports in the last 3 months on ABNB stocksee its value at $199.14. This represents a 22% gain over today’s price of $163.77.\nA similar target is foreseen by 26 analysts covered byYahoo! Finance($188.26)as well as by 34 analysts reviewedbySeeking Alpha($180.45). However,Marketbeat.comreports that37 analysts have a 5.2% lower target of $163.66.\nIf we take an average of all four of these analyst aggregation sites, the price target works out to $182.88. This is about 12% higher than today’s price. But keep in mind that these analysts generally are only providing 12-month forward price targets.\nMy price target of $250, which is 52.7% higher than today, could take up to two years to reach. Therefore, the average annual return will be 23.55% per year on a compounded annual basis. That is a pretty good return for most investors.\nBut keep in mind that I am using pretty aggressive assumptions. I assume that the company will return to its peak sales, have 50% higher FCF margins and that the FCF yield will be between 0.75% to 1.0%. These are best-in-case assumptions. This is the potential upside of the stock.\nUsing Probability To Estimate Returns\nLet’s say that there is a higher likelihood that analysts’ projections occur rather than my projection. For example, let’s say there is a 60% probability that ABNB rises to $182.99, or 12% higher. That leaves a 40% chance it will go to $250, or 53% higher.\nTherefore, the weighted probability is that ABNB stock will rise 28.4%. This is seen by multiplying 60% by 12% (i.e., 7.2%) and adding that to the result of multiplying 40% by 53% (21.2%). So, 7.2% plus 21.2% equals 28.4%. Therefore, our best guess is that ABNB will rise 28.4% to $210.28 per share.\nOn the date of publication, Mark R. Hake did not hold a long or short position in any of the securities in this article.","kind":null,"is_publish_news":true,"is_publish_highlight":true,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":190479374,"gmtCreate":1620648780098,"gmtModify":1704346071884,"author":{"id":"3578457614651975","authorId":"3578457614651975","name":"anthlow","avatar":"https://static.tigerbbs.com/a8516e3fa9353afd925953d3e130a7f0","vip":1,"crmLevel":1,"crmLevelSwitch":0,"idStr":"3578457614651975","authorIdStr":"3578457614651975"},"htmlText":"Travel’s still far from returning to normal. But once it recovers ABNB is gonna rocket","listText":"Travel’s still far from returning to normal. But once it recovers ABNB is gonna rocket","text":"Travel’s still far from returning to normal. But once it recovers ABNB is gonna rocket","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":2,"repostSize":0,"link":"https://ttm.financial/post/190479374","repostId":1139361064,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":4285987,"gmtCreate":1620692930083,"gmtModify":1680788013942,"authorId":3577619205438357,"author":{"id":3577619205438357,"idStr":"3577619205438357","authorId":3577619205438357,"name":"Stylerz","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":190479374,"type":1,"supId":0,"prevId":0,"content":"<u>hopefully</u> sooner than later","text":"<u>hopefully</u> sooner than later","html":"<u>hopefully</u> sooner than later"},{"id":4280819,"gmtCreate":1620650821647,"gmtModify":1680787923683,"authorId":3577490655979562,"author":{"id":3577490655979562,"idStr":"3577490655979562","authorId":3577490655979562,"name":"Ronn","avatar":"https://static.tigerbbs.com/01315438398478d6a6ee536786f189dd","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":190479374,"type":1,"supId":0,"prevId":0,"content":"completely agree. To the moon!!!","text":"completely agree. To the moon!!!","html":"completely agree. To the moon!!!"}],"langContent":"EN"}],"isCommentEnd":false,"newsSizeData":{"likeSize":13,"commentSize":1,"repostSize":0,"favoriteSize":1,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/1139361064"}