Marriott should be thrown in here as well, in my opinion. Their recent M&A activities along with future plans for expansion have me excited.
I haven’t personally used either but it seems $ABNB is a one of a kind business. My kids love it and it’s what I plan to use when I travel next year. Can’t wait to try it personally.
@stockopine so I’m not very familiar with AirBnB since I never travel. But someone shared the video from the CEO talking about their new changes where you can search by destination, theme, or other interesting categories. Some may think it’s silly or not a growth driver but after seeing that video, there is ZERO chance I will ever travel again without checking what $ABNB has available in the area. Can’t wait, he’ll I’m excited about window shopping for destinations on their site🤣
I struggle to understand the disparity between the two. Feels like AirBnB is jazzier, nicer aesthetic, but unsure if that warrants the valuation. Do you think narrative supports the valuation currently?
@joeyhirendernath We are currently evaluating both companies and we run a high level valuation (work in progress though). From a first view it seems that the recent pullback of $ABNB might provide an opportunity in terms of valuation and expected IRR, provided that revenues grow in line with analyst expectations in the next 5 years. If we assume that $ABNB will be able meet the historic EBITDA margins of $BKNG (average of 38% from 2015 to 2019) then we might have a case there.
On the other hand, $BKNG looks like a safer bet if it can return to its past profitability levels (EBITDA margins) and maintain annual revenue growth in the range of 15-20% (analyst expecting 20% CAGR up to 2026).