Airbnb (ABNB) Following Its Amex Deal, Is The Stock Still Undervalued

Why the new American Express partnership matters for Airbnb stock

Airbnb (ABNB) just landed an exclusive partnership with American Express that places more than one million of its listings directly on the Amex Travel platform for eligible U.S. Card Members.

This tie-up links Airbnb bookings with Membership Rewards points and new credits on select Airbnb Luxe stays and Experiences, giving Amex customers more options while potentially widening Airbnb’s reach among higher spending travelers.

Investors have already been re-rating Airbnb this year, with a 28.64% year to date share price return and a 14.13% 90 day share price gain. This points to building momentum that frames the American Express partnership as another potential driver of sentiment.

Scan beyond Airbnb and see how this American Express news compares with other travel and experience platforms on our hand picked 19 high quality undiscovered gems.

Airbnb now has scale, global reach and a fresh American Express boost helping feed the story. The harder question is whether that story is already fully reflected in a US$171 share price.

Most Popular Narrative: 5.9% Undervalued

Airbnb is trading at a last close of $171.11 against a fair value narrative of $181.84. This frames the American Express deal inside a story where the market price sits slightly below what one widely followed thesis thinks the business is worth.

Core markets are accelerating again. International markets are still growing quickly. AI is reducing costs. The core product is converting better. Hotels are gaining traction. Experiences are at least moving in the right direction. And profitability remains very strong.

See why 88 investors see Airbnb as 6% undervalued.

Result: Fair Value of $181.84 (UNDERVALUED)

Still, two pressure points could quickly challenge that 5.9% undervalued story: tighter short term rental rules in key cities and any adverse outcome from the US$1.3b IRS dispute.

Find out about the key risks to this Airbnb narrative.

Another view on Airbnb valuation

The first story has Airbnb looking about 5.9% undervalued at a fair value of $181.84. A different lens, our SWS DCF model, goes much further and places future cash flow value at $288.20 per share, which suggests Airbnb may be more underpriced. Which lens seems more reasonable to you?

Look into how the SWS DCF model arrives at its fair value.

Next Steps

Sentiment around Airbnb is clearly leaning optimistic right now, and the data points in this piece only scratch the surface. Move quickly, stress test the bullish arguments for yourself, and see how they stack up against the 3 key rewards.

Looking for more investment ideas beyond Airbnb?

If this Airbnb story has you thinking bigger, do not stop here. Broaden your watchlist and let high quality screeners do the heavy lifting for you.

• Target resilient balance sheets and steadier financial profiles by reviewing the list of solid balance sheet and fundamentals (24 results).
• Hunt for mispriced opportunities with stronger fundamentals by scanning the 34 high quality undervalued stocks.
• Prioritize stability and lower volatility by focusing on the 29 resilient stocks with low risk scores.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com