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On Wednesday, BTIG analyst Jake Fuller maintained a Neutral rating on shares of Airbnb Inc . (NASDAQ:ABNB), noting a slowdown in certain performance indicators when compared to its online travel agency (OTA) peers. According to InvestingPro data, Airbnb’s stock has declined 1.53% year-to-date, while maintaining impressive gross profit margins of 83%. Fuller pointed out that quarter-to-date checks reveal a moderation in trends for Airbnb, in contrast to the improving trends observed for competitors Booking Holdings (NASDAQ:BKNG) and Expedia Group (NASDAQ:EXPE).
The analysis highlighted that Airbnb’s site traffic comparisons have worsened by several points over the first half of the second quarter, with a similar trend in U.S. receipt data. This is juxtaposed with Booking, which has a Buy rating and a $5,500 price target, and Expedia, also rated Buy with a $210 price target, both showing positive momentum.
Fuller mentioned that traffic has historically been a reasonable directional indicator of growth. The current quarter-to-date trend suggests that Airbnb might see mid-single-digit room night growth, which aligns with BTIG’s estimates and the consensus. This growth trajectory appears reasonable given Airbnb’s revenue growth of 9.68% over the last twelve months. InvestingPro analysis reveals 10+ additional key insights about Airbnb’s performance metrics and future potential, available exclusively to subscribers.
The analyst also observed the early stages of what appears to be an intensifying competition in the activities segment of the travel market. Airbnb’s recent relaunch of its Experiences offering and Booking’s increased focus on this area, as mentioned in their first-quarter earnings call, indicate a growing strategic emphasis on this sector.
Despite the observed trends, BTIG continues to favor Booking over Airbnb due to its lower valuation multiple and higher projected earnings per share growth. The preference for Booking is based on these financial metrics rather than the operational indicators outlined for Airbnb. Currently trading at a P/E ratio of 32.1x and with analysts projecting EPS of $4.24 for FY2025, Airbnb maintains a solid financial health score of "GOOD" according to InvestingPro’s comprehensive analysis framework, which evaluates over 100 financial metrics.
In other recent news, Airbnb has announced a suite of new offerings, including Airbnb Services, Airbnb Experiences, and a redesigned app, aimed at enhancing the travel experience for its users. These developments include amenities like in-home meals and personalized photography sessions, with services launching in 260 cities. Additionally, Airbnb Experiences, available in 650 cities, offer authentic local insights through activities hosted by knowledgeable locals. The app redesign simplifies access to these services and experiences, providing a seamless booking process. Meanwhile, Airbnb is facing regulatory challenges in Spain, where the government has ordered the removal of over 65,000 listings due to alleged regulatory violations. The company plans to appeal this decision. On the financial front, Bernstein reiterated an Outperform rating for Airbnb with a price target of $185, highlighting the company’s strategic focus on growth and AI investment. DA Davidson maintained a Buy rating with a $155 target, noting positive potential for future product expansions. Conversely, Cantor Fitzgerald upheld an Underweight rating with a $100 target, citing concerns about Airbnb’s valuation compared to its peers.
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