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Airbnb, Inc. (ABNB), headquartered in San Francisco, California, operates a platform that enables hosts to offer guest stays and experiences worldwide. Valued at $82.59 billion by market cap, the company’s marketplace connects hosts and guests online or through mobile devices to book spaces and experiences. It primarily offers private rooms, primary homes, and vacation homes.
Shares of ABNB, a leading platform for unique stays and experiences, have underperformed the broader market over the past year. ABNB has declined 11.3% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 18.5%. In 2024, ABNB stock is down 5.8%, while the SPX is up 12.1% on a YTD basis.
Narrowing the focus, ABNB’s underperformance over the past 52 weeks is also apparent compared to the S&P 500 Cons Disc Sector SPDR (XLY). The exchange-traded fund has gained about 4.4% over the past year. Moreover, the ETF’s 1.5% loss on a YTD basis compares to the stock’s losses over the same time frame.
On Jun. 13, ABNB shares closed down more than 1% after an SEC filing showed signs of insider selling by CEO Brian Chesky. Chesky sold a portion of his company shares totaling over $17 million.
On May 9, ABNB shares fell nearly 9% after the company reported its Q1 results. Its EPS of $0.41 beat the consensus estimates of $0.24. The company’s revenue rose 18% year over year to $2.14 billion, surpassing the Wall Street expectations of $2.06 billion. The homestay and short-term rental company’s gross bookings increased 12% year over year to $22.90 billion.
ABNB expects Q2 revenue of between $2.68 billion and $2.74 billion, falling short of analyst estimates of $2.74 billion. Moreover, it expects Q2 net income to remain flat year over year and implied nights booked of around 125 million to 127 million, below the consensus estimates of 129.2 million.
For the current fiscal year, ending in December, analysts expect ABNB to report an EPS growth of 6.4% to $4.66 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 36 analysts covering ABNB stock, the consensus rating is a “Moderate Buy.” That’s based on 11 “Strong Buy” ratings, one “Moderate Buy,” 20 “Holds,” one “Moderate Sell,” and three “Strong Sells.”
This configuration is more bullish than three months ago, when the consensus rating was Hold, with 10 suggesting a “Strong Buy.”
Recently, Wedbush analyst Scott Devitt reiterated the “Outperform” rating on ABNB stock and maintained the price target of $165, implying a potential upside of 28.7% from current levels.
The mean price target of $154.77 represents a 20.7% upside from ABNB’s current price levels. The Street-high price target of $200 suggests an upside potential of 56%.
On the date of publication, Dipanjan Banchur 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.
