Is Airbnb Still a Growth Stock?
Airbnb (NASDAQ: ABNB) made a dramatic recovery from the pandemic last year, although its stock has reacted inversely; after soaring post its initial public offering (IPO), when the company was posting sales declines, the stock price is now down 32% in 2022 as it continues to demonstrate robust growth.
There might be several explanations for this. The skyrocketing valuation needed some readjustment, and growth stocks are out of favor in an unstable macro environment. And perhaps key is that management is expecting growth to slow down. After an enormous rebound, is Airbnb still a growth stock?
Airbnb demonstrated its market power last year as it began to recover even when travel was curtailed. In the 2021 second quarter, a nearly 300% year-over-year sales increase completely obliterated pandemic declines, soaring 10% higher than the 2019 number. It maintained high-growth levels throughout the past year, culminating in a 58% year-over-year sales increase in 2022's Q2.
Source Fool.com
