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Airbnb (ABNB) is back in focus after hiring Ahmad Al-Dahle, a former Meta generative AI leader, as Chief Technology Officer, a move investors are watching closely for its impact on AI powered travel services.
See our latest analysis for Airbnb.
The appointment of Ahmad Al-Dahle comes as Airbnb’s share price, at US$130.66, reflects mixed momentum, with a 7 day share price return of 6.18% and a 90 day share price return of 3.77%. The 1 year total shareholder return of 3.30% contrasts with a 5 year total shareholder return of 28.16%, signaling that recent enthusiasm around AI, hotel expansion and product changes is being weighed against longer term volatility and recent insider selling.
If you are watching how AI reshapes travel, it could be worth broadening your watchlist with other high growth tech and AI stocks that are drawing attention right now.
With Airbnb shares at US$130.66, trading at a discount to the average analyst price target and with a mixed track record of recent returns, the key question is simple: is this a mispriced AI travel play, or is the market already baking in future growth?
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Most Popular Narrative: 20.2% Undervalued
With Airbnb last closing at US$130.66 and the most followed narrative pointing to a fair value of US$163.75, there is a clear valuation gap that hinges on how you see its shift from pure travel to a broader lifestyle platform.
International markets are now picking up the growth while the US market is cooling a bit. They’ve launched long-term rentals, made over 500 product improvements, and are going all in on AI to make the platform smoother. It’s easier now to find the right stay without scrolling for 20 minutes.
Read the complete narrative.
Want to see what kind of long term revenue mix sits behind that price tag? The narrative leans heavily on richer margins and a premium earnings multiple. Curious which assumptions actually do the heavy lifting in that US$163.75 fair value call?
Result: Fair Value of $163.75 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, that 33.6% intrinsic discount view could quickly be challenged if European regulation removes more listings or if the US$1.3b IRS dispute is resolved against Airbnb.
Find out about the key risks to this Airbnb narrative.
Another View: Is Airbnb Actually Expensive?
That 33.6% discount to the US$163.75 fair value hinges on the narrative model, but the market is sending a different signal. At a 30.1x P/E, Airbnb screens as expensive versus the US Hospitality average of 22x. It sits close to its 30.5x fair ratio and slightly below the 31.7x peer average. Is this a reasonable quality premium, or a thinner margin of safety than the narrative suggests?
See what the numbers say about this price — find out in our valuation breakdown.
NasdaqGS:ABNB P/E Ratio as at Jan 2026
Build Your Own Airbnb Narrative
If you see the numbers differently, or just like testing your own assumptions against the market, you can spin up a custom Airbnb view in minutes. Do it your way.
A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Airbnb.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.
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