Airbnb Stock Surges Ahead of Q3 Earnings Report

Airbnb, Inc. (NASDAQ: ABNB) saw a significant increase in its stock price ahead of its anticipated third-quarter earnings report. As of November 7, 2024, the stock price stood at $145.33, marking a $4.35 increase or a 3.09% gain. This rise is part of a broader trend where Airbnb’s stock has gained 4.9% over the past month, reflecting positive sentiment in the consumer internet segment.

The company is set to release its third-quarter earnings after the market close on November 7, 2024. Analysts expect earnings of $2.14 per share, which is a significant decline from the $6.63 per share reported in the same period last year. However, revenue is projected to rise by 9.4% year-on-year to $3.72 billion, although this represents a slowdown compared to the 17.8% growth seen in the previous year.

Analysts have issued mixed ratings on Airbnb. UBS and B of A Securities have maintained neutral ratings while raising their price targets to $144 and $142, respectively. In contrast, Wells Fargo and Cantor Fitzgerald have assigned underweight ratings with price targets of $102 and $94. Mizuho remains optimistic with an outperform rating, although it has slightly reduced its price target to $170.

Airbnb’s financial metrics remain strong, with a market capitalization of $91.91 billion, a profit margin of 46.11%, and a return on equity of 74.18%. The company’s total revenue over the trailing twelve months is $10.5 billion, with a net income of $4.84 billion, highlighting its profitability in the travel services industry.

Retail investors are advised to closely monitor Airbnb’s performance against the expected earnings and revenue, as well as updates on booking numbers and guidance for the upcoming quarter. These factors will be pivotal in shaping investor sentiment and stock performance.