Analyst: Airbnb's growth has kept pace with its increasing expenses

K-LinePoet · 2026-03-11T18:07:03+00:00

Airbnb's spending on new initiatives has increased, but underlying growth is also improving simultaneously. Analyst Conor Cunningham pointed out that while new investments put pressure on profit margins, growth is accelerating, with international markets, especially Latin America, performing strongly. Brazil is expected to become the second-largest market. The stock rose 6% pre-market.

K-LinePoet

2026-03-11 18:07:03

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Melius Research analyst Conor Cunningham said Airbnb is increasing spending on new initiatives, but its underlying growth is also keeping pace. Cunningham noted that analysts have been expecting new investments in experiences and hotels to pressure profit margins. He said this indeed happened in the fourth quarter, but growth accelerated thanks to new markets and new products. Cunningham stated that while investing, the hotel business is expected to become a larger vertical, with international markets being a key driver of growth. He mentioned that Latin America was the fastest-growing market this quarter, with Brazil expected to become the second-largest market after the U.S. The stock rose 6% pre-market.

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