We recently compiled a list of the 7 High Growth Travel Services Stocks For 2025. In this article, we are going to take a look at where Airbnb Inc. (NASDAQ:ABNB) stands against the other high growth travel services stocks.
The COVID-19 pandemic dealt a severe blow to both cruise and air travel industries. The mere thought of traveling in a closed compartment with people from all over the world scared travelers. Hospitality businesses like hotels and restaurants were less affected but still felt the heat.
Over the last year, the air travel industry has recovered to the pre-pandemic levels. Cruise passengers have grown in numbers for the second successive year in 2024, and are likely to post a record in 2025 as well.
On the back of this recovery, travel services stocks have performed well and are likely to continue performing well in the future. We looked at the top 7 travel services stocks by screening them based on sales growth since the pandemic.
To come up with the list of high-growth travel services stocks, we only considered stocks with a market cap of at least $10 billion and a 5-year sales growth rate of over 20%.
A vacation home luxury bedroom setup with stunning decor showing a desired getaway experience.
Airbnb Inc. (NASDAQ:ABNB)
Airbnb Inc. is a hospitality service that allows hosts to provide accommodation and related activities to guests. Its online platform connects homeowners with travelers through mobile devices and websites to ease the accommodation booking process. Though the stock suffered losses in January, analysts are still optimistic about the stock’s performance.
The reason behind the optimism is the solid 9-month performance of the company which indicates a 12% increase in revenue as compared to the 9-month revenue of the previous year. The company’s profitability decreased but that is expected in seasonal stocks. In addition to the outstanding revenue growth, another major achievement was the growth in operating cash flow which went up from $3.82 billion to $4.05 billion.
As a result of the strong Q3 financial result, ABNB is expected to grow its revenue by 15% YoY. Not just the revenue but the free cash flows are projected to raise approximately $4.2 billion in 2025. The company is well-positioned to grow in 2025 based on the strong performance of the previous year and attractive 2025 guidance. Investors should take the decline in share prices as a buying opportunity for potential gains in the future.
Overall ABNB ranks 1st on our list of the high growth travel services stocks for 2025. While we acknowledge the potential of ABNB as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as ABNB but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.
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