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This Beaten-down Travel Stock Has A Major Growth Opportunity -- Here's Why
When it comes to travel there are many options for places to stay. Traditionally, hotels had a monopoly on this aspect of travel but that has changed and it's largely because of Airbnb (NASDAQ: ABNB). From the company's humble beginnings renting out a room and an air mattress, Airbnb has become a go-to for many travelers, disrupting the hotel industry in the process.
From an investing standpoint, the results have been less impressive. Since its debut on the public markets, Airbnb is down 19% while the S&P 500 has risen 54%. The last two earnings reports disappointed Wall Street and sent the stock plummeting. However, a deeper look into the business reveals some exciting growth opportunities that investors would be wise to consider. If these opportunities work out, it could lead to much better returns for investors.
It may not have been top of mind for the millions of people who tuned in to watch the Paris Olympics, but all those spectators needed places to stay while at the games. A city like Paris and its surrounding areas don't have the hotel capacity to accommodate the massive influx of visitors, so Airbnb played a crucial role in supplying housing. Airbnb's CEO Brian Chesky even met with the French president to collaborate on this initiative.
