The travel industry has taken a beating since the pandemic and just when we thought we are finally getting back to normal, a new variant, omicron, surprised us. Airbnb (NASDAQ:ABNB) is a home-sharing company that hasn’t had it easy since the start of the pandemic. ABNB stock had regained some momentum over the past six months but it has shown significant volatility in the past month. The stock has gone from $207 to $160 in a month.

This latest dip is due to the concerns about the new variant and the latest travel guidelines that have impacted several countries. However, I believe ABNB stock is one for the long term. Investors must not judge it entirely on the current situation across the world.

Let’s dig deeper into what’s working for ABNB stock.

Stellar Revenue Growth

Airbnb released third-quarter earnings last month and beat analyst estimates. It reported an impressive revenue of $2.2 billion which is a 70% growth from the lows it reported during the pandemic. The net income increased to $834 million, up by 213% from the pre-pandemic level.

This is also the best quarter reported by the company in terms of revenue and it is impressive to see how it has bounced back after worst of the pandemic.

The rise in profit has led to an increase in the free cash flow. This is proof that the pandemic could not slow the growth momentum of the company. The consistently increasing free cash flow makes a solid case for ABNB stock. 

The Current Dip Is Temporary

Investors are wondering whether omicron will pose another challenge for the company. The anxiety and worry related to the new variant have led to a dip in many travel stocks but I believe this is temporary. Omicron is likely more transmissible than the delta variant but less dangerous. Further, a rise in vaccination and booster shots will make it easier to handle the variant.

Countries had to lay out new travel guidelines due to the variant but it will not lead to a dip in travel. The holiday season is upon us and we see a lot of people ready to celebrate with their loved ones. This will lead to a rise in travel and Airbnb will continue to see bookings this month. Also, Airbnb does not restrict itself to a particular geographical area which makes it more attractive. 

However, the current dip in ABNB stock is temporary and it will rebound soon. The sell-off due to the threat of the variant will not last long and the stock will pick up in the coming weeks. I believe this dip is a good chance to buy. 

The Bottom Line On ABNB Stock 

Airbnb may have recently gone public but the company is already fairly established in the industry. The potential to expand is massive and it is offering the right services to consumers.

Not a lot of travelers are ready to book a stay at a big hotel. Concerns about the virus and close contact with a large number of other strangers has travelers opting for a smaller, more intimate Airbnb instead.

The growth of Airbnb is impressive and we will see it soar higher in the coming years.

If not for the pandemic, Airbnb would have been much higher today but it is still nothing less than a feat to report stellar financials during a pandemic.

Stocks often go through highs and lows and seasoned investors do not judge a good company based on a small dip. If you see a dip, that is the time to add it to your portfolio, and ABNB stock is the one to own for the long term. 

On the date of publication, Vandita Jadeja did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long-term gains. Her knowledge of words and numbers helps her write clear stock analysis.