1 Travel Stock That Should Be on Every Investor's Holiday List

ABNB +0.21%

Key Points

• Airbnb has plenty of levers to keep growing its business over the next decade.

• The stock is trading at a cheap price, and management is now buying back a lot of stock.

• Combine everything, and Airbnb stock looks like a perfect buy for this holiday season.

• 10 stocks we like better than Airbnb ›

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 (NASDAQ: ABNB).

Here's why this should be the one stock on your holiday wish list.

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.

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.

Should you invest $1,000 in Airbnb right now?

Before you buy stock in Airbnb, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Airbnb wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $572,405!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,104,969!*

Now, it’s worth noting Stock Advisor’s total average return is 1,002% — a market-crushing outperformance compared to 193% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.

See the 10 stocks »

*Stock Advisor returns as of November 24, 2025

Brett Schafer has positions in Airbnb. The Motley Fool has positions in and recommends Airbnb. The Motley Fool has a disclosure policy.

1 Travel Stock That Should Be on Every Investor's Holiday List was originally published by The Motley Fool