Comparing Profitability Paths of Airbnb and Carnival
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 25 2026
0mins
Source: Fool
- Airbnb's Market Leadership: Airbnb connects over 5 million hosts with guests, achieving nearly $12.2 billion in revenue for FY 2025, a 10.3% increase, with a net income of approximately $2.5 billion and a net margin of 20.5%, showcasing its strong performance and leadership in the travel sector.
- Carnival's Recovery Momentum: Carnival reported approximately $26.6 billion in revenue for FY 2025, up 6.4%, with a net income of around $2.8 billion and a net margin of 10.4%, indicating a gradual return to profitability after years of losses.
- Debt-to-Equity Ratio Comparison: Airbnb's debt-to-equity ratio stands at about 0.3, reflecting a low debt level, while Carnival's ratio is as high as 2.3, indicating a tighter capital structure that necessitates careful debt management.
- Free Cash Flow Performance: Airbnb generated nearly $4.6 billion in free cash flow, although stock-based compensation accounted for 34.3% of operating cash flow, while Carnival's free cash flow totaled $2.6 billion, highlighting differing strategies and challenges in cash flow management.
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Analyst Views on ABNB
Wall Street analysts forecast ABNB stock price to fall
29 Analyst Rating
12 Buy
16 Hold
1 Sell
Moderate Buy
Current: 147.650
Low
107.00
Averages
144.85
High
180.00
Current: 147.650
Low
107.00
Averages
144.85
High
180.00
About ABNB
Airbnb, Inc. operates a global platform for stays and experiences. The Company’s marketplace model connects hosts and guests online or through mobile devices to book spaces and experiences around the world. The Company has built its platform to onboard new hosts, especially those who previously had not considered hosting. It partners with hosts throughout the process of setting up their listing and provides them with a suite of tools to manage their listings, including scheduling, merchandising, integrated payments, community support, host protection, pricing guidance, and feedback from reviews. Its Website and mobile applications provide its guests with a way to explore a variety of homes and experiences and an easy way to book them. Its technology platform powers its two-sided marketplace and enables its global network of hosts and guests. It owns a trademark portfolio with protection in 220 countries in which it operates for its primary brands, AIRBNB, and its Belo logo.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Security Concerns: Andrew Garbarino, chairman of the House Committee on Homeland Security, highlighted alarming reports that certain Chinese open-weight models can match leading U.S. models in vulnerability discovery and cybersecurity tasks, raising serious concerns amid escalating U.S.-China tech rivalry.
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See More
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- Market Competition Landscape: While Airbnb's asset-light model provides strong competitive advantages, MGM Resorts continues to attract significant tourist traffic with its physical assets in Las Vegas and Macau, necessitating careful consideration of both companies' strategies in the ongoing market recovery.
See More
Dow Jones Index Sees Major Component Changes
- Dow Component Changes: Earlier this week, Verizon was removed and Alphabet added to the Dow Jones Industrial Average, marking the 54th adjustment since its inception in 1896, highlighting ongoing market dynamics.
- Nike's Challenges: Following the release of its fiscal Q4 results on June 30, Nike's shares fell below $40, making it the lowest-priced component in the Dow, reflecting its minimal influence amid fierce competition and sales weakness.
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See More
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- Nike at Risk: With shares dipping below $40, Nike is the only Dow component priced under $113, and ongoing sales weakness coupled with strained relationships with wholesalers diminishes its influence within the index, making it a likely candidate for removal in the next 12 months.
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See More
