Analyst: Airbnb's growth is keeping up with the continually increasing expenses.

Melius Research analyst Conor Cunningham said that Airbnb is increasing its spending for new initiatives, but its underlying growth is keeping up with the pace. Cunningham said analysts have always expected that new investments in experiences and hotels would put pressure on profit margins. He said that this did happen in the fourth quarter, but growth accelerated thanks to new markets and products. Cunningham said that while making investments, the hotel business should become a larger vertical area, with international markets being a key driver of growth. He said that Latin America was the fastest growing market in the quarter, with Brazil expected to become the second largest market after the United States. The stock rose 6% in pre-market trading.