Better Stock to Buy Right Now: Uber vs. Airbnb
Key Points
Uber and Airbnb both benefit from powerful brand recognition and network effects.
These businesses both post double-digit revenue growth and are consistently profitable.
The market isn’t asking investors to pay expensive valuations to buy either of these stocks.
Technological advancements, particularly centered on the rise of the internet and mobile capabilities, have had a pronounced impact on our economy. Companies that weren't possible before now exist. Just look at Uber Technologies (NYSE: UBER) and Airbnb (NASDAQ: ABNB), two gig-economy businesses that operate on a global level.
Which of these growth stocks is the better one to buy right now?
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Image source: Getty Images.
The power of brands and network effects
One of the keys to the success of these companies is their competitive advantage. Both Uber and Airbnb can be considered category creators, as they disrupted existing markets with totally new offerings. Consequently, their brands resonate strongly with consumers. It's quite powerful when the company names of Uber and Airbnb are also used as verbs to describe the actual activity being done.
These businesses also possess powerful network effects. With more drivers, Uber's mobility division becomes increasingly valuable to riders with better pricing and shorter wait times. And a larger rider base presents more opportunities for drivers to generate revenue.
And as the number of hosts and active listings grows, the Airbnb platform provides much more choice to travelers. In turn, a larger customer base attracts more hosts and listings.
The point is that the competitive positions that Uber and Airbnb have built make them hard to topple.
You don't have to choose just one
Besides their brands and network effects, there are other reasons to appreciate these companies. For starters, their growth is hard to ignore. Uber's gross bookings and revenue jumped 19% and 18%, respectively, in 2025. It ended the year with 202 million monthly active users. Airbnb reported $91 billion in gross bookings last year. That figure was up 12% compared to 2024, lifting revenue 10% in the process.
Both companies are also consistently profitable. Uber's operating margin of 10.8% is not as high as Airbnb's 20.5%. However, they each generate positive free cash flows, indicating the sustainability of their business models.
Both management teams are forward-thinking, as they care deeply about pushing their companies forward. In Uber's case, it's well-positioned to handle a notable risk factor, which is the potential for autonomous driving technology. It's a leading partner to enterprises in the space.
On the other hand, Airbnb introduced bookings for services and experiences last May in an effort to become a more comprehensive travel app. The hope is that this brings in incremental revenue and new customers.
As of this writing, Uber shares trade at a forward price-to-earnings ratio of 22.9, while Airbnb's multiple is 26.3. I see no reason why investors can't buy both businesses and hold them for five years.
Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Airbnb and Uber Technologies. The Motley Fool has a disclosure policy.