Q3 Rundown: Airbnb (NASDAQ:ABNB) Vs Other Online Marketplace Stocks
The end of an earnings season can be a great time to assess how companies are handling the current business environment and discover new stocks. Let’s take a look at how Airbnb (NASDAQ:ABNB) and the rest of the online marketplace stocks fared in Q3.
Marketplaces have existed for centuries. Where once it was a main street in a small town or a mall in the suburbs, sellers benefitted from proximity to one another because they could draw customers by offering convenience and selection. Today, a myriad of online marketplaces fulfill that same role, aggregating large customer bases, which attracts commission-paying sellers, generating flywheel scale effects that feed back into further customer acquisition.
The 11 online marketplace stocks we track reported a slower Q3; on average, revenues beat analyst consensus estimates by 1.8% while next quarter's revenue guidance was 1.7% below consensus. Inflation (despite slowing) has investors prioritizing near-term cash flows, but online marketplace stocks held their ground better than others, with the share prices up 6.7% on average since the previous earnings results.
Airbnb (NASDAQ:ABNB)
Founded by Joe Gebbia and Brian Chesky by renting out a blowup bed on the floor of their San Francisco apartment, Airbnb (NASDAQ:ABNB) is the world’s largest online marketplace for lodging, primarily homestays.
Airbnb reported revenues of $3.40 billion, up 17.8% year on year, in line with analyst expectations. It was a mixed quarter for the company. Nights and Experiences Booked (key measure of volumes) grew but missed expectations slightly. However, revenue beat by a bit. On the other hand, its revenue guidance for next quarter underwhelmed.
The stock is up 17.2% since the results and currently trades at $139.85.
Is now the time to buy Airbnb? Access our full analysis of the earnings results here, it's free.
Best Q3: MercadoLibre (NASDAQ:MELI)
Originally started as an online auction platform, MercadoLibre (NASDAQ:MELI) is a one-stop e-commerce marketplace and fintech platform in Latin America.
MercadoLibre reported revenues of $3.76 billion, up 39.8% year on year, outperforming analyst expectations by 5.9%. It was a very strong quarter for the company, with impressive growth in its user base and exceptional revenue growth.
MercadoLibre scored the fastest revenue growth among its peers. The company reported 120 million daily active users, up 36.4% year on year. The stock is up 21.2% since the results and currently trades at $1,573.2.
Is now the time to buy MercadoLibre? Access our full analysis of the earnings results here, it's free.
Weakest Q3: Farfetch (NYSE:FTCH)
Inspired by the idea of allowing anyone to buy clothes from landmark boutiques of cities like Paris or Milan without having to leave their couch, Farfetch (NYSE: FTCH) is a global marketplace for luxury fashion, connecting boutiques, brands and consumers.
Farfetch reported revenues of $572.1 million, down 1.3% year on year, falling short of analyst expectations by 12.1%. It was a weak quarter for the company, with slow revenue growth and a miss of analysts' revenue estimates.
Farfetch had the weakest performance against analyst estimates in the group. The company reported 4.13 million active buyers, up 7.5% year on year. The stock is down 91.2% since the results and currently trades at $0.42.
Read our full analysis of Farfetch's results here.
Etsy (NASDAQ:ETSY)
Founded by a struggling amateur furniture maker Robert Kalin and his two friends, Etsy (NASDAQ:ETSY) is one of the world’s largest online marketplaces, focusing on handmade or vintage items.
Etsy reported revenues of $636.3 million, up 7% year on year, in line with analyst expectations. It was a mixed quarter for the company, with a narrow beat of analysts' revenue estimates but slow revenue growth.
The company reported 97.34 million active buyers, up 3.4% year on year. The stock is up 26.3% since the results and currently trades at $76.76.
Read our full, actionable report on Etsy here, it's free.
Shutterstock (NYSE:SSTK)
Originally featuring a library that included many of founder Jon Oringer’s photos, Shutterstock (NYSE:SSTK) is now a digital platform where customers can license and use hundreds of millions of pieces of content.
Shutterstock reported revenues of $233.2 million, up 14.3% year on year, surpassing analyst expectations by 8.8%. It was a mixed quarter for the company, with an impressive beat of analysts' revenue estimates but a decline in its user base.
Shutterstock scored the biggest analyst estimates beat and highest full-year guidance raise among its peers. The company reported 551,000 users, down 9.2% year on year. The stock is up 42.9% since the results and currently trades at $48.98.
Read our full, actionable report on Shutterstock here, it's free.
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The author has no position in any of the stocks mentioned
