/Airbnb%20Inc%20logo%20with%20red%20background%20by-%20viewimage%20via%20Shutterstock.jpg)
San Francisco-based Airbnb, Inc. (ABNB) provides a marketplace that connects hosts and guests online or through mobile devices to book spaces and experiences. With a market cap of $74.2 billion, Airbnb operates across various countries in the Americas, Asia Pacific, Africa, Europe, and the Middle East.
Companies worth $10 billion or more are generally described as "large-cap stocks," Airbnb fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the travel services industry. The company boasts millions of active listings worldwide, offering travelers a diverse range of exciting options.
Despite its strengths, Airbnb is down 31.7% from its 52-week high of $170.10 achieved on Mar. 21. ABNB has declined 20.3% over the past three months, substantially lagging behind the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 5.7% gains during the same time frame.
Over the longer term, ABNB stock declined 18.4% in the past year and 14.7% in 2024, underperforming XLY’s 10.2% gains over the past 52 weeks and 4.7% returns on a YTD basis.
To confirm the bearish trend, ABNB has traded below its 50-day moving average since late April with slight fluctuations and below its 200-day moving average since late July.
Shares of Airbnb plunged 13.4% after the release of its Q2 earnings on Aug. 6. Despite a 10.6% year-over-year revenue growth to $2.8 billion, it missed Wall Street's expectations. It observed a substantial rise in costs, especially its sales and marketing expenses, surging by 17.9% to $573 million. Consequently, the company’s net income dropped by 14.6% year over year to $555 million, while its EPS of $0.86 missed the consensus estimates by 6.5%, making investors jittery.
Airbnb’s competitor, Expedia Group, Inc. (EXPE), has outperformed ABNB. EXPE gained 22.7% over the past year and dipped 10.9% in 2024.
Among the 36 analysts covering the ABNB stock, the consensus rating is a “Moderate Buy.” The mean target price of $130.94 represents a potential upside of 12.7% from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
