Airbnb is currently in a difficult phase on the stock market, but this could be a good time for investors to re-enter. The company, known as a pioneer in home-sharing, has lost a quarter of its market value in the past six months. This is one of the worst performances among major internet companies for this period. Even in the longer term, the trend does not look better: Airbnb's stock has fallen by 10% in the past twelve months, making it the only stock in the S&P 500 Hotels, Resorts, and Cruise Lines sub-group that is in the red during this time.

Airbnb has long held a unique position at the intersection of travel, online commerce, and the gig economy. The company popularized the idea of people renting out their extra rooms or apartments to strangers. By the end of last year, more than five million hosts had registered their accommodations on the platform, and the number of guest bookings totaled over 1.5 billion.

This Impressive Scaling, However, Also Makes Airbnb Vulnerable to the Same Economic Trends Affecting Established Companies in Travel, Accommodation, and Entertainment

Despite the challenges, Airbnb remains better positioned compared to many competitors. Wall Street expects the company's gross bookings to grow by nearly 11% this year, compared to a growth of 4% to 6% for competitors like Expedia and Booking.com. Analysts also predict that Airbnb's revenue growth will remain in double digits over the next four years, while companies like Marriott and Hilton are expected to see only annual growth of 5% to 8%.

A Part of Airbnb's Problems Lies in the Company's Relative Novelty.

Furthermore, Airbnb is about to add new services and offerings to its portfolio. Chesky announced a so-called "Winter Release" for October, which is intended to "lay the foundation for host-offered services." New services like a host marketplace, travel-related services for guests, and sponsored listings could diversify Airbnb in the long term and transform it from a single-product company into a more versatile provider.

Although Airbnb Faces Challenges, the Company Continues to Offer Growth Potential, Especially Through Planned New Services. With a Current Price at a Historic Low of 17 Times Projected Free Cash Flow and a Discount of Over 20% Compared to Other Gig-Economy Companies Like Uber and DoorDash, Investing in Airbnb Stock Now Could Be Rewarding in the Long Term.