Illustration shows Airbnb app

Will the market shift its attention to other sectors following the crash of high-growth tech stocks in the first week of November? Tech titans have spent billions of dollars on artificial intelligence this year and promise to spend more in 2026. Meanwhile, a Nasdaq constituent not chasing the AI dream as much could be a better investment prospect.

Airbnb finished lower at the closing bell on 6 November 2025, but soared by almost 5% in after-hours trading. Unlike the big AI spenders, this $74.4 billion company uses AI at the application level but not deep in research. According to Brian Chesky, CEO of Airbnb, AI customer agents are very useful to the business.

Strong Quarter

In the third quarter of fiscal 2025, revenue and net income rose 9.7% and 0.4% to $4.1 billion and $1.4 billion, respectively, compared to the same quarter in fiscal 2024. The Adjusted EBITDA of $2 billion was the highest ever in any quarter.

Other key financial metrics, such Gross Booking Value (GBV) and Nights and Seats Booked, increased 14% and 9% year-over-year to $22.9 billion and $133.6 million. Chesky said it was another strong quarter for the travel brand.

'We're driving continued growth by focusing on four key areas: making our service better, bringing Airbnb to more parts of the world, expanding what we offer, and integrating AI into our app,' Chesky added.

Airbnb introduced new features during the quarter to ease booking, improve reservation management, and provide access to a wider selection of homestay locations. Interestingly, the company noted that nearly 50% of experience bookings are not connected to or unrelated to Airbnb accommodations bookings.

The reason is the launch of the reimagined Airbnb Experience. Chesky boasts, 'With the launch of services and experiences, we're changing travel again. Now you can Airbnb more than an Airbnb.'

In addition to bringing a new audience to Airbnb, Chesky thinks the services and experiences are bringing people back to Airbnb, but not necessarily to book a home. The Reserve Now, Pay Later scheme drove night and seat bookings in the third quarter and could potentially be the next growth catalyst. Management plans to roll this out beyond the US market in 2026.

Improved maps enhance the user experience and increase conversion rates for users of the Airbnb app. Overall, Airbnb service and experiences received an average rating of 4.3 stars out of five.

Positive Business Outlook

Airbnb maintains a positive business outlook owing to the booking behavior by guests and over 110,000 applications from potential hosts. Supply won't be a problem given the healthy pace of growth in high-density urban and non-urban destinations. Latin America and the Asia Pacific have the most growth and the highest demand

Launching hotels is also under consideration, with the goal of building a true hotel business. The pilot areas are Los Angeles, New York City, and Madrid. Airbnb intends to establish direct partnerships with both boutique and independent hotels. Simplifying the fee structure to help hosts price more competitively has begun.

Airbnb and AI

Regarding AI, Chesky stated, 'Looking ahead, we're focused on driving growth and moving even faster to integrate AI across Airbnb to make it smarter, more personal, and easier to use.'

Airbnb uses AI in different ways, but always to enhance its service offerings and streamline operations. The technology is essential to deliver customer-centric solutions and achieve business success. However, Airbnb is not under extreme pressure to recoup AI investments.

Disclaimer: Our digital media content is for informational purposes only and does not constitute investment advice. Please conduct your own analysis or seek professional guidance before investing. Remember, investments are subject to market risks, and past performance does not guarantee future results.

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