What is up with $ABNB’S valuation?


Was shopping around for stocks and I came across $ABNB. It has been largely isolated from the larger tech tip with only an 11% drop YTD. It is valued at $97B with trailing 1 year revenues of $6B. That is over a 16 P/S ratio with only 2 quarters of profit.

I get that it is a “reopening play”, but for comparison Uber trades at roughly 3.5 P/S and has seen strong reopening demand for the ride sharing segment despite being 50% off ATH.

Is there something that I am missing in my analysis? Critiques welcome.

Note: I have no positions in either of the stocks mentioned.


Comments

Leave a Reply

Your email address will not be published. Required fields are marked *