Why Airbnb Can Outrun Booking Holdings
Airbnb (Nasdaq: ABNB) shares have swung up and down since its Dec. 10 IPO, but after its recovery over the last few days, the stock is back on top of the online travel world.
Trading at a market cap of almost $100 billion as of Monday's close, Airbnb has eclipsed Booking Holdings (Nasdaq: BKNG), its closest rival, in market value as Booking is worth about $84 billion. Some investors have been skeptical that Airbnb deserves a greater price tag than Booking since the parent of Priceline, Kayak, and Booking.com is still much bigger than Airbnb and solidly profitable.
In 2019, Airbnb generated $38 billion in gross booking value compared to $96.4 billion in gross bookings at Booking Holdings. Booking also reported nearly $5 billion in net income that year on a generally accepted accounting principles (GAAP) basis compared to a loss of $674 million at Airbnb.
Source Fool.com
