Will Airbnb ever recover?

Key Points. Airbnb is down roughly 50% this year despite having one of its best years ever. The stock could fall further in 2023, but it is bound for recovery in the next bull market. Investors looking for a well-valued growth stock should consider buying Airbnb.



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Airbnb stock price stood at $130.61 According to the latest long-term forecast, Airbnb price will hit $150 by the end of 2023 and then $200 by the middle of 2025. Airbnb will rise to $250 within the year of 2026, $300 in 2028, $350 in 2030, $400 in 2033 and $450 in 2035.

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Airbnb is forecasted to grow earnings and revenue by 15.2% and 12.2% per annum respectively. EPS is expected to grow by 14.2%. Return on equity is forecast to be 35.9% in 3 years.

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In 2023, Airbnb hosts can expect an evolving landscape due to increased demand and higher nightly rates. This might result in increased revenue but also attract greater competition as more property owners enter the market.

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Airbnb properties can be a great way to generate rental income in the vacation rental market. In 2023, Airbnb remains a good investing choice for many. However, there are various considerations that can affect the profitability of an Airbnb property, including: location, property type, pricing, marketing and so on.

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Major metro areas weren't spared either: Airbnbs in Phoenix, Austin, Nashville, Denver, New Orleans, and Seattle saw revenues reduce by more than 35% from May 2022's figures, according to the data. The situation seems to be a perfect storm of demand decreasing at a time of increased supply.

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During the fourth quarter of 2022, Airbnb reported a net income of $319 million, its most profitable quarter ever. Compared to the same period in 2021, net income improved by $264 million due to increased revenue and cost controls.

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Bottom line. Buying an Airbnb property can be lucrative, but there are some things to consider before investing. For starters, be sure to research the laws and regulations about short-term rentals in your area, as some cities restrict or even prohibit them.

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Who are Airbnb's competitors? Airbnb competitors include websites like Vrbo, Booking.com, Tripadvisor, Agoda, Expedia, TUI Villas, TravelStaytion, HomeToGo, Plum Guide, and Google. Not all of them are vacation rental marketplaces.

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These declining revenues are the result of a slowdown in post-pandemic travel demand to go along with a massive increase in Airbnb supply, trends which are now causing many Airbnb operators to lose money on their rental.

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The Laws, Regulations and Taxes Are Difficult To Understand One of the biggest headaches for real estate investors is navigating the local laws for short-term rentals in different places. It's important to research Airbnb regulations before picking an area to invest in because it's illegal in some places.

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Among the list of investments, a notorious name in the hospitality sector pops up: Airbnb. The industry disruptor based out of San Francisco received total funding of USD 112 million from Bezos. This investment have further accelerated the home-sharing platform's rapid growth.

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Rob started his journey four years ago with little information and money, but lots of hope (and a supportive spouse). Today, he owns 14 short-term rentals (and counting!) and has made over $1.5 million in booked reservations on Airbnb. Are you interested to know how he got here?

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A 2021 study of more than 125,000 Airbnb complaints on Twitter found that 72% of the issues were related to poor customer service and 22% were related to scams.

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4. Threats Of Airbnb
  • Decreased Travel Demand: Due to the worldwide pandemic, the whole travel industry is suffering and so is Airbnb. ...
  • Increased Competitions: Airbnb tries to stand out as a powerful player in attracting hosts and guests. ...
  • Laws and Regulations in Every Country: Airbnb operates in around 192 countries.


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Hence, the flexibility and reach of Airbnb are additional reasons to consider it as a disruptive innovation platform. In general, there are many regulatory hurdles and huge upfront costs in building new hotel properties. However, Airbnb does not need to build a new property to provide accommodations at a new location.

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Airbnb hosts earned more than triple all other workers, with nearly half earning more than $500 per month. The monthly average for hosts was $924, blowing away No. 2 TaskRabbit, whose users average $380. A full 10% of Airbnb hosts earn $2,000 or more per month.

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15 Most Profitable Airbnb Cities in the World
  • Montreal, Canada. ...
  • Brisbane, Australia. ...
  • Boston, USA. ...
  • Hilo, USA. ...
  • Canmore, Canada. ...
  • Chula Vista, California. ...
  • Copenhagen, Denmark. Number of Approximate Years To Recover Investment: 9.52. ...
  • Washington, D.C., USA. Number of Approximate Years To Recover Investment: 8.79.


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