Renaissance Technologies Portfolio: Top 10 Stock Picks

8. Airbnb, Inc. (NASDAQ:ABNB)

Stake Value as of Q4 2024: $548,683,144

Airbnb, Inc. (NASDAQ:ABNB) is an American company that operates an online marketplace to connect people looking to rent out their properties with people who are looking for accommodation for their short-term homestays across various regions of the world. It is headquartered in San Francisco, California.

Airbnb, Inc. (NASDAQ:ABNB) reported fourth-quarter results on February 13 that beat analysts’ estimates. Revenue increased 12% year-over-year to $2.5 billion, driven by robust growth in nights stayed and a modest uptick in average daily rates. Net income for the quarter was posted at $461 million, improving from a net loss of $349 million in Q4 2023.

Airbnb, Inc. (NASDAQ:ABNB) said that it had rebuilt its platform over the past several years and rolled out new product updates to enhance user experience, which is helping drive higher conversion rates. The management also hinted at the new offerings planned for launch in May this year.

The company generated $4.5 billion in free cash flow in fiscal 2024, representing a free cash flow margin of 40%. It ended the year with $10.6 billion of corporate cash and investments. The strong balance sheet position allowed Airbnb, Inc. (NASDAQ:ABNB) to repurchase $3.4 billion of Class A common stock for the full year. The vacation rental company has been encouraged by early demand in 2025 and expects to deliver revenue between $2.23 billion and $2.27 billion in Q1, representing 4% to 6% year-over-year growth.

As of the close of business on February 19, ABNB’s share price had surged by over 12% since the earnings report. Investor sentiment remains stable. According to Insider Monkey’s database for Q4 2024, 54 hedge funds held a stake in the company, unchanged from the third quarter. As of December 31, 2024, Renaissance Technologies had investments of nearly $549 million in Airbnb, Inc. (NASDAQ:ABNB).