Airbnb's Future Revenue: Analyzing The Impact Of Shifting Consumer Preferences And Regulatory Challenges

KeyBanc Capital Markets analyst Justin Patterson reiterated an Overweight rating on the shares of Airbnb, Inc. ABNB, lowering the price target to $135 from $144.
Last week Airbnb reported first-quarter results and issued a soft outlook.
Airbnb said it expects 2Q revenue to be between $2.35 billion and $2.45 billion. Nights and experiences growth in 2Q is expected to be lower than anticipated revenue growth.
Also Read: Airbnb's Highs and Lows: Analysts Stay Grounded, Await More Material Pullback
The analyst believes RNE and margins to be affected by transitory factors - tough Y/Y comp, shift in marketing spend.
Patterson remains particularly cautious on the company's nights and experiences booked, which will decelerate in 2Q, as the company laps pent-up travel demand from the COVID-19 Omicron variant.
In addition, regulation inhibiting supply costs and consumer preferences shifting back to hotels can be headwinds.
The analyst lowered EBITDA estimates for 2023 by 1% to $3.36 billion. For 2024, the analyst lowered the EBITDA forecast by 3% to $3.93 billion.
On the flip side, Airbnb hinted that new products planned to be launched in 2024 could increase take rates, the analyst notes, which would expand margins over the next several years.
Price Action: ABNB shares are up 0.09% to $105.37 on the last check Monday.