Airbnb Shares Drop 10% Following Q1 Earnings

Airbnb (NASDAQ:ABNB) delivered better-than-expected first-quarter earnings, but shares fell more than 4% in pre-market today after the company’s second-quarter revenue guidance came in just shy of Wall Street expectations.

The vacation rental platform posted adjusted earnings of $0.24 per share, narrowly beating analyst forecasts of $0.23. Revenue for the quarter grew 6% year-over-year to $2.27 billion, slightly above the $2.26 billion consensus estimate.

Looking ahead, Airbnb projected second-quarter revenue between $2.99 billion and $3.05 billion, with the midpoint of $3.02 billion falling just below analyst expectations of $3.03 billion. The company noted that the earlier Easter holiday in 2024 is expected to contribute roughly two percentage points to Q2 growth, helping comparisons to the prior year.

Despite the tepid guidance, Airbnb reaffirmed its full-year adjusted EBITDA margin target of at least 34.5%, highlighting continued cost discipline and operational efficiency. During Q1, gross booking value rose 7% to $24.5 billion, while total nights and experiences booked increased 8% to 143.1 million.

CEO Brian Chesky emphasized the company’s focus on long-term strategy, including expanding beyond accommodations. He said Airbnb is entering its "next chapter" by building out offerings that go beyond just a place to stay.

Canaccord Genuity lowered its price target on Airbnb (NASDAQ:ABNB) to $180 from $190 while maintaining a Buy rating, ahead of the company’s upcoming first-quarter earnings report on May 1.

The firm anticipates mixed Q1 results for Airbnb, expecting gross bookings and revenue growth to slow by about six percentage points quarter-over-quarter. However, the analysts noted that much of this deceleration is tied to specific calendar effects like the Leap Day, the timing of Easter, and foreign exchange headwinds. Adjusting for these factors, Q1 revenue is still expected to grow between 10% and 12% year-over-year, roughly in line with the 11.8% increase seen in the fourth quarter.

Broader macro risks are also a concern. Canaccord pointed to emerging signs of tariff-related economic uncertainty impacting travel demand, with several major U.S. airlines recently withdrawing their full-year guidance. That said, a potential slowdown in international visitors to the U.S. may not significantly hurt Airbnb, as travelers might simply shift their bookings to other markets where Airbnb maintains strong supply.

Despite near-term challenges, the analysts remain optimistic, noting that travel spending has shown resilience post-pandemic. Recent consumer surveys suggest vacation spending remains a priority even as discretionary spending on live entertainment and sports is softening, which could continue to benefit Airbnb through the year.

Airbnb (NASDAQ:ABNB) saw its shares surge more than 14% intra-day on Friday after delivering better-than-expected fourth-quarter results and issuing an upbeat revenue forecast for the first quarter of 2025, fueled by robust travel demand.

For Q4, the vacation rental giant posted earnings per share of $0.73, exceeding analyst projections of $0.59. Revenue reached $2.48 billion, surpassing Wall Street’s $2.43 billion estimate.

Gross bookings totaled $17.6 billion, ahead of the $17.2 billion forecast, driven by 111 million nights booked, marking a 12% year-over-year increase and outpacing expectations of 108 million.

The company highlighted record-breaking travel demand, with its Nights and Experiences Booked metric showing its strongest growth of 2024 in Q4. This momentum contributed to 491 million total bookings for the year, generating nearly $82 billion in gross booking value (GBV).

Looking ahead, Airbnb expects Q1 2025 revenue between $2.23 billion and $2.27 billion, below analysts' expectations of $2.3 billion. However, its EBITDA margin forecast of at least 34.5% for the full year aligns closely with Wall Street’s 34.6% projection.

• The average price target for Airbnb, Inc. (NASDAQ:ABNB) has seen a positive adjustment to $143 last month, indicating a bullish sentiment among analysts.
• Strategic initiatives, including the reintroduction of the Experiences feature, are expected to drive app usage and revenue growth.
• Airbnb's financial health remains strong, with significant revenue growth and a robust free cash flow, positioning it well for future growth.

Airbnb, Inc. (NASDAQ:ABNB) is a global platform that connects hosts and guests for booking stays and experiences. It has become a significant player in the travel and hospitality industry, competing with traditional hotels and other online travel agencies. Over the past year, the consensus price target for Airbnb's stock has fluctuated, reflecting analysts' changing views on the company's performance and market conditions.

Last month, the average price target for Airbnb was $143, indicating a positive sentiment among analysts. This suggests an expectation of growth or improved performance in the near term. Analyst Justin Patterson from JMP Securities supports this view, setting a price target of $144, as highlighted by Seeking Alpha. This aligns with the company's strategic initiatives, such as reintroducing its Experiences feature in over 100 cities by May 2025, which could boost app usage and revenue.

Three months ago, the average price target was slightly lower at $137, showing a modest increase in analysts' expectations over the past quarter. This could be due to favorable market conditions or company developments. The travel and hospitality industry is recovering post-pandemic, with TSA data indicating improved travel volumes during the 2024-2025 winter season. This recovery could positively impact Airbnb's business and stock price targets.

A year ago, the average price target stood at $139.1. The slight upward trend in the consensus price target over the past year suggests a generally positive outlook for Airbnb. The company's revenue growth from $5.99 billion in 2021 to $9.92 billion in 2023, driven by increased bookings and higher gross bookings value, supports this optimism. Despite its high valuation, Airbnb is considered a GARP (growth-at-a-reasonable-price) stock, thanks to its robust cash flow margins and substantial net cash position of $9.26 billion.

Airbnb's strong financial health is further underscored by its robust free cash flow and share repurchase strategy, emphasizing its commitment to shareholder value. The company is strategically positioned to benefit from the travel industry's anticipated high single-digit growth in 2025. By leveraging artificial intelligence to enhance personalized experiences and improve operational efficiency, Airbnb aims to maintain its growth trajectory. Analyst Justin Patterson's price target of $144 reflects this potential upward movement, as Airbnb is anticipated to surpass earnings estimates in its forthcoming report.

Airbnb (NASDAQ:ABNB) presented an optimistic forecast for the fourth quarter, though its third-quarter results came in mixed, with earnings narrowly missing expectations. Shares of the vacation rental giant fell more than 4% in after-hours trading, reversing an earlier rally sparked by the report.

The company reported earnings per share of $2.13, just below Wall Street’s expectation of $2.14, on revenue of $3.73 billion, slightly surpassing the consensus of $3.72 billion. Bookings for Nights and Experiences rose by 8% year-over-year, as demand continued to expand across all regions. The average daily rate increased by 1% to $164, compared to the same quarter last year.

For the fourth quarter, Airbnb projected revenue between $2.39 billion and $2.44 billion, closely aligning with Wall Street’s estimate of $2.42 billion. The company also noted that its take rate for Q4 2024 would likely be slightly lower year-over-year due to a one-time boost from unused gift cards in Q4 2023.

• John Colantuoni from Jefferies set a price target of $135 for Airbnb, slightly below its current trading price, indicating a conservative outlook.
• Airbnb's stock closed at $137.19, a 0.54% increase, showcasing investor confidence despite market downturns.
• The company's market capitalization stands at approximately $88 billion, reflecting its significant market presence.

Airbnb, Inc. (NASDAQ:ABNB) is a prominent player in the online marketplace for lodging and tourism experiences. Founded in 2008, the company has revolutionized the way people book accommodations, offering a platform for hosts to rent out their properties to travelers. Airbnb competes with other travel and accommodation services like Booking.com and Expedia.

On October 22, 2024, John Colantuoni from Jefferies set a price target of $135 for Airbnb. At that time, the stock was trading at $137.19, which is about 1.6% higher than the target price. This indicates that the market has a slightly more optimistic view of Airbnb's potential than Jefferies' target suggests.

In the latest trading session, Airbnb's stock price closed at $137.19, marking a 0.54% increase from the previous day, as highlighted by Zacks. This positive movement is notable because it occurred despite a general downturn in the market, suggesting investor confidence in Airbnb's performance.

The stock has traded between $135.13 and $137.99 today, showing some volatility. Over the past year, Airbnb's stock has seen a high of $170.10 and a low of $110.38, reflecting significant fluctuations in its market value. Currently, Airbnb's market capitalization is approximately $88 billion, indicating its substantial presence in the market.

The trading volume for the day is 2,571,990 shares, which provides insight into the level of investor interest and activity surrounding Airbnb. This volume can influence the stock's price movement and reflects the market's response to recent developments and announcements.

Mizuho analysts lowered their price target for Airbnb (NASDAQ:ABNB) to $170 from $175 while maintaining an Outperform rating on the stock.

The analysts highlighted several factors influencing the revised target: first, the projected 8% room night growth for Q4 2024 may be overly optimistic, particularly if shorter booking lead times, which moderated by 6 percentage points in July, persist. Second, Airbnb is expected to prioritize affordability and quality by introducing price tools, ensuring price parity, and removing lower-quality listings, which could lead to a deferral in advertising spending to support these initiatives. Third, while Airbnb's market expansion plans are expected to continue into fiscal 2025, the company is anticipated to improve efficiency in other areas to counterbalance potential margin pressures, with margins projected to remain flat year-over-year.

Although near-term estimates have been revised downward, the analysts remain bullish on Airbnb's long-term potential, citing the low penetration of the home accommodation market and significant growth opportunities in areas like Experiences and Advertising.