Ignore “Dividend Don’s” Twitter Tantrum: Here’s Why Wall Street’s Buying Airbnb, Not an Armageddon

Well, here we are—another Sunday, another Twitter meltdown. This time, the “money Twitter” gurus are waving their pitchforks at Airbnb, screaming "Airbnb Armageddon.”

And with the stock down 47% from its all-time high and another 13% after the Q2 earnings drop, you might think they’ve got a point. But before you start packing your bags, let’s take a step back, sip that overpriced cold brew (or Chai tea latte if that’s your jam), and ask: Is this a prime buying opportunity?

Let’s rip off the Band-Aid. Airbnb had a rough couple of weeks. Q2 earnings didn’t exactly quiet the Twitter mob. Revenue growth slowed to 11% year over year—decent, but not enough to change the narrative. 

Worse yet, North American bookings, a key market, showed signs of weakening, especially for those crucial holiday trips. Add in higher-than-expected marketing expenses, and you've got a recipe for panic selling.

Yes, the stock dropped about 10% since earnings and is now hovering around $116—a shadow of its 2021 peak. The "I told you so" crowd on Twitter is already predicting doom, but let’s be real: these are the same folks who claim to have $10 million portfolios while spamming your DMs to buy their dividend courses.

Despite Dividend Don and his fearful retweets, not everyone on Wall Street is running for cover. Richard Clarke, an analyst over at Bernstein, is giving a big thumbs up to Airbnb. According to him, this is just a blip on the radar, and a great opportunity to get in. He’s got an Outperform rating on the stock and a price target of $174, which, if you’re keeping track, is a 50% upside from where it is now.

Clarke isn’t alone. Assenagon Asset Management boosted its stake by a staggering 19,052.8% in Q2, now holding 1.7 million shares worth over $256 million. Other heavy hitters like Swedbank and SteelPeak Wealth are also increasing their positions, seeing dollar signs where the Twitter mob sees bankruptcy.

Why the optimism? Airbnb is still the king of short-term rentals, with over 8 million active listings and $80 billion in annual gross bookings. Clarke believes Airbnb will continue to gain market share from hotels and expand globally. Plus, new ventures like travel experiences and sponsored listings are on the horizon for 2025.

Let’s talk numbers because, at the end of the day, that’s what really matters. Airbnb is currently trading at about 26 times its projected 2024 earnings. Sure, that’s not dirt-cheap, but it’s also not nosebleed territory—especially for a company with a rock-solid balance sheet and nearly $10 billion in net cash. Plus, the company has been ramping up stock buybacks, snapping up $1.5 billion worth so far this year. That’s like Airbnb saying, “We believe in our future, so we’re putting our money where our mouth is.”

Despite recent setbacks, Airbnb still generates massive free cash flow and enjoys industry-leading margins, all without owning any real estate. It’s the kind of asset-light business model that investors love. Let’s not let recency bias trick you into thinking the sky is falling. Airbnb’s business is tougher than a two-dollar steak, and unless people suddenly develop an allergy to vacations, it’s not going anywhere. With plans to conquer new territories like Japan and India, and to roll out killer travel experiences, Airbnb’s growth story is far from hitting the last chapter.

So, is Airbnb a steal at these prices? If you’re betting on its long-term hustle, then heck yeah, it just might be. But hey, don’t take my word for it—do your homework, dig into the numbers, and see if you’re ready to bet on the Airbnb comeback tour.

Stock.News does not have positions in companies mentioned.