Airbnb and Nintendo: Growth Stocks to Watch in 2025

In a promising outlook for investors, Airbnb and Nintendo are highlighted as potential growth stocks. Airbnb has shown significant revenue growth and profitability post-COVID-19, while Nintendo anticipates a revenue surge with its upcoming console release.

Date: 04-02-2025

AI Rating: 7

The report discusses two growth stock recommendations—Airbnb (NASDAQ: ABNB) and Nintendo (OTC: NTDOY). Both companies present opportunities for investors, albeit through different mechanisms.

Airbnb's Financial Performance: Airbnb has experienced a surge in revenue since going public, tripling its revenue to $10.8 billion in the 12 months ending September 2024. The company has also flipped to profitability, showcasing an operating margin of 25% in the first nine months of the year. These figures suggest strong momentum, indicating that its net earnings could rise sufficiently over the next five years, allowing the stock to double.

Nintendo's Position: Conversely, Nintendo's revenue has declined from $16.6 billion in 2021 to $9.8 billion recently, largely due to external pressures such as currency fluctuations and the aging of its console. However, the upcoming launch of the next-generation console, Switch 2, slated for 2025, is expected to generate significant revenue growth. Despite its current depressed earnings, the P/E ratio of 26 aligns with the S&P 500 average, thus suggesting that the stock is relatively undervalued at this time.

Overall, while Airbnb demonstrates solid growth and profitability metrics, Nintendo is prepped for potential earnings explosion from its new product release in the near future. Both stocks could be appealing prospects for investors looking to diversify or improve their portfolios in a fluctuating market.

Stocks: ABNB NTDOY