Airbnb reported its latest quarterly earnings after the close Wednesday, topping consensus estimates.
The company reported first-quarter earnings of $0.41 per share, $0.18 better than the analyst estimate of $0.23, while revenue for the quarter came in at $2.14 billion, above the consensus estimate of $2.06 billion.
For the second quarter, ABNB expects Q2 revenue between $2.68 billion and $2.74 billion, which is at the lower end of the $2.74 billion consensus estimate.
Here's how Wall Street analysts reacted:
Jefferies, which has a Hold rating and $150 price target on the stock, said the results failed to ease the growing fears of slowing growth. "ABNB failed to deliver a beat/raise on Nights, which we believe was necessary to ease concerns about slowing growth and risk of downside to consensus estimates for accelerating growth in 2H24/FY25," wrote the firm. "In addition, a disappointing outlook for EBITDA is partly the result of plans for higher marketing, a potential sign that the cost of growth is increasing."
JPMorgan maintained a Neutral rating on the stock but raised the price target to $145 from 4140. "Taking a step back, tonight's results were not thesis changing, and we expect growth sustainability to remain the biggest pushback, with support from ABNB's strong track record of innovation and execution, margin expansion, and growth potential in newer initiatives," said the bank.
Morgan Stanley kept an Underweight rating and a $120 price target on the stock following the release. "ABNB is a unique travel platform, but room nights continue to underwhelm and we see EBITDA growth increasingly predicated on ADRs, take rate, and new products (with more risk)," the bank explained.
Evercore ISI maintained an In-Line rating and a $140 target on ABNB. The firm said Airbnb shares fell following the results, mainly due to management's muted Q2 outlook, particularly with respect to Room Nights and EBITDA margin. Even so, over the long-term, Evercore "remains constructive on ABNB based on its premium growth and profitability outlook."
Finally, Bank of America maintained a Neutral rating on Airbnb but cut its target for the stock to $160 from $168. The bank said it was a strong quarter but the outlook reflects slowing travel growth. "As nights growth has slowed (across the industry) Airbnb is seemingly pivoting its growth strategy to new international markets and services," stated BofA.