The holiday travel season is upon us. You may not like the price you paid for your family vacation, but companies in the travel industry sure do. Trillions of dollars are spent on travel every year, representing 10% of the global economy, making it one of the world's largest sectors.
One company stands above travel competitors, and is set to lead this industry over the next decade: Airbnb (ABNB +0.22%).
Here's why this should be the one stock on your holiday wish list.
Image source: Getty Images.
Airbnb's steady disruption
Airbnb is unique because of its focus on the home-sharing model. This differentiates its supply vs. direct competitors and hotels, and is a popular platform for younger customers.
Launching out of the Great Recession more than a decade ago, the platform is now seeing around $100 billion in gross booking volume on its platform every year. Last quarter, revenue grew 10% year over year, with healthy free cash flow of $1.3 billion.
NASDAQ: ABNB
Key Data Points
But management is not resting on its laurels. The company is pushing to expand Airbnb to new areas around the world, which should provide a steady growth tailwind for years to come.
It is also adding new products like tours and services for guests, such as at-home chefs and massages. Combined with its consistent market share gains in its core markets like the United States, Airbnb could keep growing its revenue for the next decade.
Why the stock is a buy to close out 2026
Even though this business has proven its disruptive growth chops time and time again, Airbnb stock remains undervalued right now when looking at its trailing earnings. When using enterprise value and EBIT (earnings before interest and taxes) to normalize its net cash on the balance sheet, Airbnb stock trades at a cheap enterprise value-to-EBIT (EV/EBIT) of 21.
Combine this with its aggressive stock repurchase program, and Airbnb is a slam-dunk investment for your holiday list this year.
