July 2022 AirBNB (ABNB) Stock Pick and Bib & Tucker Small Batch Whiskey Pairing

July 2022

Authors: Mark Peters, Allan Maule

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Website: airbnb.com

Twitter: @Airbnb

CEO: Brian Chesky

Founder: Brian Chesky and Nathan Blecharczyk

Market Cap at Time of Article: $65.53

Current Analyst Recommendations: With a current stock price of $90.06 and an average analyst target price of $176.84 (taken from 31 analysts), we see ABNB as a strong buy. While the average analyst rating is a 2.5 (where 2 is a Buy and 3 is a Hold) we view ABNB more in the Buy to strong Buy category, so we give it a 1.5.

Quarterly Revenue Growth Year-Over-Year: 70.1%, which is great for a company the size of Airbnb. Amidst all of the chaos in the market right now, look for companies that will be here for years to come that are making great quarterly revenues like ABNB.

Insiders: 1.54% is a low percentage of insiders. We always like to see a higher percentage of insiders, especially when looking at smaller companies. Airbnb is a company where we see tremendous value in the long term, and its current price point makes it a can't miss for the long haul even though the percentage of insiders is low.

What makes Airbnb (ABNB) worth your hard-earned money for the next decade or more? ABNB was a great buy when it first went public (jumping in value more than 100% in one day of trading), and it’s still a great buy now. The current stock price is roughly $25 more than when ABNB went public in 2020, which is a pleasant contrast to countless other stocks that IPOed in the last few years and are now underwater on their IPO price. We attribute at least part of this success to AirBNB having excellent leadership in its founder and CEO Brian Chesky. Chesky continues to execute well on his business vision, keeping AirBNB’s employee headcount on the lean side and attaining an eye-popping $1.2 billion in free cash flow in Q12022. This high cash flow has given AirBNB the ability to make dramatic improvements in its customer service and user interface design.

You now have the opportunity to invest in an established company with fabulous quarterly revenue returns at a massive discount. Everyone likes a bull market, but real wealth is made in a bear market. ABNB should be a part of everyone's portfolio.

Why talk about Airbnb (ABNB) to all your friends and family?

Airbnb has become widely known in the travel and hospitality arena. The verbiage of "We are staying at an Airbnb" has become widely used even if people are using a different travel service. Many people would love to own their own rental property, but that takes real investment in both time and money. Buying ABNB stock is a great way to own a part of the real estate boom without having the headache of renters and late-night calls when a light bulb goes out.

You also can’t mention Airbnb without mentioning the change that our world has undergone in the past few years. The pandemic changed the ways so many of us live, work, and travel, with households embracing longer vacation, stays as remote work continues to thrive. With more and more companies adjusting to allow remote workers, ABNB has benefited from more guests booking week- and month-long stays in AirBNB properties. All this points to a company with the wind at its back as it continues to disrupt the hospitality and vacation business.

How is this asset disruptive?

The AirBNB business model is simple and effective: Allow homeowners to turn their properties into short-term rentals. Just like Uber disrupted the taxi business, ABNB has done the same to hotels. The uniqueness of many AirBNB properties as well as amenities like full kitchens and larger bathrooms have inspired many travelers to opt for an AirBNB stay over a traditional hotel. In fact, a lot of hotel chains have adapted to offer properties (houses and condos) just like ABNB. For many people, especially younger generations that like to travel with a large group and make last-minute reservations, Airbnb offers better options than a hotel chain can.

Conclusion:

Airbnb is well worth a percentage of your portfolio for the next decade. Yes, there are those who don't like the business model, and the company has gotten backlash as Wall Street and other real estate investors have bought up countless homes in vacation areas. However, ABNB is here to stay. Investors in the short-term rental market have exploded, and ABNB gets a cut every time a booking is made. With hosts all around the world offering many different types of experiences when it comes to travel and housing, AirBNB has cemented its place in the future of hospitality and vacationing.

Whiskey Pairing: Bib & Tucker 6-Year Small Batch
Retail: $52 Proof: 92

As we age, our desires don’t always age with us. We see more of the world, discover new things, and treat ourselves to unique delights. For many, this leads us to book an AirBNB stay in a town we’d never previously heard of. For me, this means passing over the proven quality of an aged liquor and letting my eyes wander to a younger, more supple bottle with curves in all the right places. Meet this new favorite, aged a mere 6 years but with delightful taste beyond its youth.

Bib & Tucker begins with an earthy nose resplendent with leather, cinnamon, and chestnut. You will notice the cinnamon and licorice in earnest on the palate, with traces of oak and dried corn. This youthful spirit finishes with butterscotch and caramel that sticks around just long enough to make a new memory. With its earthy nose and rich flavor, Bib & Tucker is an excellent bourbon to have with a cigar.