Airbnb has announced plans to expand beyond short-term rentals, with the company investing between $200 million and $250 million in new businesses later this year. The move is aimed at mimicking Amazon’s “everything retail” approach, where consumers can find a one-stop shop for all their travel and living needs.
According to CEO Brian Chesky, Airbnb aims to launch adjacent products that will eventually generate $1 billion in revenue each. The company plans to introduce one or two new businesses every year for the next five years. This strategy is similar to Amazon’s approach, which started with books and expanded into related areas such as DVDs, CDs, toys, and more.
Airbnb’s quarterly earnings beat expectations, with the company reporting a 12% revenue growth during the fourth quarter. Citi analysts have maintained their buy rating on Airbnb, citing a healthy broader travel market, intact margins, and new products. As a result, shares are surging around 13% in morning trading, marking a significant boost to the company’s stock price.
Source: https://www.investopedia.com/airbnb-stock-jumps-as-ceo-chesky-invokes-amazon-do-everything-approach-11679936