Airbnb is a company that connects people who have rooms to spare with those looking for short-term accommodations. Founded in 2008, Airbnb has become one of the most popular sites for travelers all over the globe. The company’s story is an inspiring one, and its future is so bright. Since its inception, Airbnb has grown exponentially. In 2017 alone, Airbnb made $5 billion in revenue, up 40% from 2016. Given these numbers, it seems like buying Airbnb stock would be the next logical step!
What is an Airbnb, and what are the benefits of investing in it?
First, you should know what Airbnb is. The website is most often used to find short-term lodging. Airbnb currently operates in 191 countries, and their booking website is available in 78 languages. Airbnb hosts range from long-time residents to multi-millionaires. Their most famous hosts include Bill Gates and tech mogul Larry Page, who both offer up their homes on the website. The Airbnb’s fees help to cover costs for hosting accommodations, such as cleaning services.
Airbnb has grown to become one of the world’s largest rental websites, and has given “bikes and cars” companies like Uber and Lyft a run for their money.
The downsides of purchasing Airbnb stock
But, Airbnb isn’t your run-of-the-mill company. This isn’t a stock that you can simply buy, hold, and forget. You have to pay attention and make sure you’re investing in the right stock. And, for many investors, the right approach is to consider the risks and rewards associated with investing in Airbnb stock. These risks are associated with ownership, but the real risk comes from the regulatory side of the house.
I don’t mean to throw shade at Airbnb. This is just a brief snapshot of the factors that could sway investors away from Airbnb stock. Here are a few of the things you should keep in mind when evaluating Airbnb stock:
Airbnb’s 100 million global users are known as homeowners, not renters.
What will an Airbnb stock purchase do for you?
Owning an Airbnb stock gives you exposure to the fastest growing stock company. When you think about Airbnb, you probably think about staying in someone’s house for a weekend. If you’re thinking this way, you may wonder why you’d want to own an Airbnb stock.
The answer is simple: This company is all about connecting people. Once you decide to list your house, you open yourself up to a world of possibilities. If you have a spare room in your home, you can rent it to tourists looking to visit a new city. If you have a little extra space in your home, you can rent it out to small business owners who need the extra money. If you have a weekend house in a great location, you can open it up to travellers looking for a place to sleep and eat.
As someone who has written about the subject of Airbnb before, I have to say that it’s an excellent story with an equally great opportunity for long-term investors. However, because the company does offer an entry price of less than $100 per share, and because of its rapid growth and the regulatory challenges that lie ahead, it’s not a stock I’d advise to buy for the long haul. Instead, it’s a stock to consider purchasing as a trade.
For example, let’s say you’re a blue-chip investor and you’re able to get your hands on 100 shares of the stock. Let’s assume that these shares are currently trading at a $100 per share. All you would have to do in order to make some money is wait for the company’s stock price to drop to $80 per share.