Why Airbnb Stock Is Moving Lower

Airbnb Inc ABNB shares are trading lower Wednesday after the company reported worse-than-expected top line results. Several analysts also lowered price targets on the stock.

Airbnb said second-quarter revenue increased 58% year-over-year to $2.1 billion, which missed the estimate of 2.11 billion, according to data from Benzinga Pro. The alternative accommodation travel company reported quarterly earnings of 56 cents per share, which beat the estimate of 44 cents per share.

Nights and experiences booked reached 103.7 million in the quarter, up 25% year-over-year. Gross booking value totaled $17 billion, up 27% year-over-year.

"We have nearly every type of space in nearly every location, so however travel changes, we are able to adapt. And regardless of the economic environment, our guests come to Airbnb because they can find great value, and our Hosts can earn extra income," the company said.

Airbnb expects third-quarter revenue to be between $2.78 billion and $2.88 billion versus the estimate of $2.77 billion.

The company also announced a $2 billion share repurchase program, citing confidence in long-term growth and profitability. 

See Also: Moderna Q2 Earnings: Earnings Beat, COVID-19 Inventory Write-Off, Additional Share Buyback

Analyst Assessment: 

• Needham analyst Bernie McTernan maintained Airbnb with a Buy rating and lowered the price target from $220 to $150.
• Piper Sandler analyst Thomas Champion maintained Airbnb with a Neutral rating and lowered the price target from $174 to $121.
• Citigroup analyst Ronald Josey maintained Airbnb with a Buy rating and lowered the price target from $160 to $140.
• Credit Suisse analyst Stephen Ju maintained Airbnb with a Neutral rating and lowered the price target from $190 to $165.
• Baird analyst Colin Sebastian maintained Airbnb with an Outperform rating and lowered the price target from $155 to $140.

ABNB Price Action: Airbnb has traded between $191.73 and $86.71 over a 52-week period.

The stock was down 5.75% at $109.65 at press time, according to Benzinga Pro.

Photo: Kevin Phillips from Pixabay.