Airbnb (ABNB) could add about 1 million rooms to its total addressable market by the end of the year, RBC Capital Markets said.
The analysts said in a note Sunday that in its four initial hotel markets, including New York, San Francisco, Los Angeles, and Madrid, the company added more properties in August than in July, with further growth so far in September.
The analysts added they estimate Airbnb could soon have around 8,000 to 9,000 hotel properties on its platform, which could expand its cumulative room supply total addressable market.
At the same time, new artificial intelligence agent technologies from Meta (META) and Instinct have increased concerns about how AI could affect digital marketplaces, including travel, the analysts said, adding that Airbnb is exposed to these risks, but they believe it is somewhat better protected than many other online marketplaces.
The analysts said Airbnb remains a "category-leading brand monetization story with hotels as a strong first step."
RBC has an outperform rating and a $195 price target on Airbnb.
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