Is Airbnb Stock a Strategic Buy in 2026 Amid Diverging Travel Platform Performance?

The travel sector is undergoing a seismic shift as macroeconomic tailwinds, AI-driven innovation, and evolving consumer preferences reshape the competitive landscape. At the center of this transformation is Airbnb (ABNB), a stock that has long been a darling of growth investors but now faces mounting scrutiny amid diverging performance from peers like Expedia (EXPE) and Booking Holdings (BKNG). With Airbnb projected to grow revenue by 9.7% in 2026 to $13.49 billion, its Zacks Rank #3 (Hold) status, and a valuation trading at 27 times next year's earnings, the question remains: Is ABNB a strategic buy in 2026, or is it lagging behind the next generation of travel platforms?

Revenue Growth and Strategic Diversification: A Tale of Two Models

Airbnb's 9.7% revenue growth projection for 2026 is modest compared to the double-digit momentum seen at Expedia and Booking Holdings. While ABNB's core short-term rental business remains resilient, its diversification into services like private chefs has yet to translate into meaningful margin expansion. In contrast, Booking Holdings reported 16% year-over-year revenue growth in Q3 2025, driven by its Connected Trip initiative and a 39.53% market share in the online travel agency (OTA) sector. Expedia, meanwhile, is leveraging its B2B segment-up 32% in earnings per share in Q3 2025-to close the gap with its peers.

The Zacks Rank #3 (Hold) for Airbnb reflects cautious optimism. While the company's adjusted EBITDA margin of 50% is strong, its earnings revisions have stagnated, with the current quarter's consensus estimate at $0.66 per share, down 9.6% year-over-year. This contrasts sharply with Booking Holdings' 47% EBITDA margin and Expedia's 15x forward P/E ratio, which suggests investors are pricing in stronger earnings visibility.

AI Integration: A Race to the Future

AI is the new battleground for travel platforms, and Airbnb's approach is both ambitious and internally focused. The company is rolling out natural language search, aiming to keep users within its ecosystem. However, Booking Holdings and Expedia are outpacing ABNB in partnerships and execution. Booking's collaboration with OpenAI has already improved search performance and customer satisfaction, while Expedia's AI-powered trip matching and B2B automation are driving operational efficiency.

According to a report by Hospitality Today, Booking and Expedia are becoming "AI's preferred travel partners" due to their ability to scale personalized experiences. Airbnb's reliance on internal AI development, while innovative, may delay its ability to match the rapid iteration seen at its peers.

Macroeconomic Tailwinds and Travel Demand

The U.S. travel sector is forecasted to grow to $1.2 trillion in 2026, fueled by Fed rate cuts that have boosted consumer spending. Airbnb's international expansion and focus on Gen Z travelers-favoring short trips and immersive experiences-position it to benefit. However, Booking Holdings' geographic diversification and Expedia's B2B strength give them a broader runway for growth.

Regulatory risks, however, loom large for Airbnb. Stricter short-term rental laws in cities like New York and Barcelona could dampen its international expansion, whereas Booking and Expedia's traditional OTA models face fewer legal hurdles.

Valuation and Investor Sentiment

Airbnb's 27x forward P/E ratio is a stark outlier compared to Booking Holdings' 20x and Expedia's 15x. This premium is justified by its brand equity and first-mover advantage but may not hold if its AI and services strategies fail to deliver. As stated by Hotel News Resource, Airbnb's strategic pivot toward social connections and experiences has raised concerns about the sustainability of its valuation.

Conclusion: A Buy for the Long-Term, But With Caution

Airbnb remains a compelling long-term play for investors who believe in its ability to redefine travel through AI and services. However, in 2026, the stock is more of a "Hold" than a "Buy" due to its valuation premium, regulatory risks, and the superior execution seen at Booking Holdings and Expedia. For those seeking exposure to the travel boom, the latter two offer stronger earnings visibility and more robust AI integration. That said, Airbnb's 9.7% revenue growth and strategic diversification suggest it could still outperform in a sector where innovation is king.