Airbnb Stock Struggles Amid Disappointing Earnings
Airbnb, Inc. (ABNB), headquartered in San Francisco, offers a platform that connects hosts and guests for booking accommodations and experiences through mobile and online services. With a market capitalization of $82.9 billion, the company operates in regions across the Americas, Indo-Pacific, Africa, Europe, and the Middle East.
Airbnb’s Stock Performance Lags Behind Market
Over the past year, Airbnb has significantly underperformed compared to the broader market. ABNB shares have dropped 10.5% in the last 52 weeks and have declined by 1.4% on a year-to-date (YTD) basis, contrasting sharply with the S&P 500 Index’s ($SPX) impressive 22.6% gain over the same period and 3.1% in 2025.
Comparison with Travel Tech Sector
When looking specifically at the travel technology sector, Airbnb’s performance still falls short. The Amplify Travel Tech ETF (AWAY) has seen returns of 14.9% in the past year, significantly higher than Airbnb’s results.
Q3 Results Cause Stock Price Drop
Following the release of its disappointing Q3 earnings on November 7, Airbnb’s stock fell by 8.7%. While the company reported a respectable 9.9% year-over-year revenue growth to $3.7 billion, exceeding analysts’ expectations marginally, rising product development and sales and marketing expenses negatively impacted profit margins. The adjusted earnings per share (EPS) for the quarter fell 10.9% from the previous year to $2.13, missing projections by 1.8% and unsettling investors.
Expectations for Fiscal Year 2024
In the upcoming week, Airbnb is expected to announce its fiscal 2024 results, with analysts anticipating a 6.4% year-over-year decline in earnings to $4.10 per share. The company’s history with earnings surprises has been mixed; it has surpassed expectations twice over the past four quarters, while analysts’ estimates have not been met on two occasions.
Analyst Ratings Reflect Cautious Sentiment
Among the 38 analysts covering the ABNB stock, the consensus rating is a “Hold.” This includes nine “Strong Buy,” one “Moderate Buy,” 23 “Hold,” one “Moderate Sell,” and four “Strong Sell” ratings. This situation has remained stable over the last three months.
Price Targets Indicate Potential Variances
On February 3, BofA Securities analyst Justin Post reaffirmed a “Hold” rating for Airbnb while setting a price target of $151. The average price target for ABNB is $138.39, which indicates a 6.8% premium over current levels, while the highest target of $195 signifies a potential upside of 50.5%.
On the date of publication, Aditya Sarawgi did not hold positions in any of the securities mentioned in this article. All information provided is for informational purposes only. Please refer to the Barchart Disclosure Policy for more details.
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
