Down 43%, Is This Growth Stock a Once-in-a-Decade Buying Opportunity?

There's a disruptive and tech-enhanced internet business that reported $2.8 billion in revenue in fourth-quarter 2025 (ended Dec. 31, 2025). This financial figure was up 155% from the same period six years ago in 2019. Clearly, the company is finding notable success.

Investors should be interested. That's because this growth stock trades 43% below its record high from February 2021 (as of Feb. 23).

Is it a once-in-a-decade buying opportunity right now?

Image source: Airbnb.

Look at the fundamentals

When it comes to creating an entirely new category, there aren't many companies that should be mentioned in the same breath as Airbnb (NASDAQ: ABNB). The business disrupted the market for accommodations, and its growth has been noteworthy.

Last quarter, Airbnb beat Wall Street's revenue guidance. Management provided a better-than-expected sales forecast for the current three-month period.

Gross bookings totaled $20.4 billion in Q4, up 16% year over year. The platform saw 121.9 million nights and seats booked. That number rose 10% compared to Q4 2024.

Airbnb's scale supports its impressive profits. The company reported $4.6 billion in free cash flow in 2025, translating to an unbelievable margin (as of percent of revenue) of 38%.

The leadership team is focused on adding more supply to its services and experiences offerings, which was launched in May last year. Airbnb is also leaning into artificial intelligence, with the technology improving search and customer service capabilities.

Airbnb's brand and network effect

Due to the presence of an economic moat, this is a high-quality business. Airbnb has powerful brand recognition -- the company name is even used interchangeably as a verb. What's more, management pointed out that in third-quarter 2023, 90% of traffic to the site was direct or unpaid, indicating user intent.

As a two-sided platform, with 2.5 billion guest arrivals and more than 9 million active listings, there is a clear network effect at play. Travelers benefit because there is so much choice. As there are more people looking for places to stay, Airbnb attracts more hosts. This leads to greater supply, which expands the number of options from which travelers can choose. It's a positive feedback loop that supports Airbnb's competitive position.

Deserving of a spot on the watch list

For an investment candidate to be viewed as a once-in-a-decade opportunity, there must be potential for massive returns in the future. Airbnb probably doesn't fall into this bucket, even though it could beat the market.

For what it's worth, the valuation is reasonable. Shares trade at a forward price-to-earnings ratio of 24.8. That's a sweet deal, given that the consensus view is for earnings per share to increase at a compound annual rate of 18% over the next three years. This growth stock should at least be on investors' watch lists.

Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Airbnb. The Motley Fool has a disclosure policy.