How Good Has Airbnb (ABNB) Stock Actually Been?

Airbnb (NASDAQ: ABNB) has become one of the largest travel companies in the world in the relatively short time it's been around. It has changed how people travel, opening up new experiences in regions and cities that were previously hard to travel to due to lack of hotels.

It has grown to be a $12 billion company, about four times its revenue when it went public four years ago. It generates a lot of cash, and it's highly profitable.

However, its stock hasn't matched this trajectory. Let's see how it's performed and why.

Image source: Airbnb.

Traveling with Airbnb

Airbnb continues to redefine the travel experience as a platform for vacation rentals and related services. Users can rent homes for periods longer than the traditional travel period, essentially living in rentals and being part of a community for an experience that a hotel usually can't provide. Because there are so many options, with more than 8 million listings worldwide, users can find almost any kind of rental to fit any budget.

While the concept has taken off, it hasn't been without challenge or controversy. Airbnb has been dealing with regulatory hurdles in many regions, like New York City, which has effectively banned the service. It has also gotten negative feedback about hidden fees and lists of chores for guests.

Management has responded to feedback and made many changes to its platform, and it continues to report growth, but it's been slowing. Revenue increased 10% year over year in the third quarter, with gross booking volume up 14%.

How the stock is moving

Airbnb stock had its initial public offering (IPO) in late 2021, but it quickly climbed higher due to investor hype before falling back. Here's how the stock has performed in comparison with the S&P 500 over several time intervals.

Data source: YCharts data as of Nov. 25, 2025.

At best, the stock has been mediocre, lagging the broader market. This is the danger of investing in highly valued stocks in a strong bull market. It's kind of reminiscent of...now.

Airbnb is a great company, but it came onto the market at a high price. There just wasn't so much higher to go. Even at the current price, it trades at a price-to-earnings ratio of 27 and a price-to-sales ratio of 6. That's just not cheap for a company that's growing at Airbnb's rates.

Does the market still see great things for Airbnb? There could still be a growth story. The inflationary environment is not the best time for the company to shine, and it could stage a comeback. Airbnb may still have lots of long-term opportunities, but it's not likely to return to its previous high-growth numbers. Investors may have to wait for a better entry point before deciding that it finally looks like a solid value.

Jennifer Saibil has positions in Airbnb. The Motley Fool has positions in and recommends Airbnb. The Motley Fool has a disclosure policy.