Why Airbnb Stock Is Falling Wednesday

Airbnb Inc ABNB shares are trading lower Wednesday after the company reported first-quarter results and issued a soft outlook. Several analysts lowered price targets following the print.

• Q1 Revenue: $1.8 billion beat estimates of $1.6 billion
• Q1 EPS: 18 cents beat estimates of 7 cents

Revenues were up 20% year-over-year. Gross booking value was up 19% year-over-year to $20.4 billion. Nights and experiences booked also climbed 19% to 121.1 million. The company's current backlog of nights is approximately 25% higher than it was a year ago.

Airbnb ended the quarter with $10.6 billion in cash.

"Over the past three years, we’ve seen new use cases emerge as guests across all regions and age groups use Airbnb for long-term stays," the company said in a letter to shareholders.

"We have seen our highest number of active bookers, demonstrating both loyalty from our returning guests and a growing base of first-time bookers."

Airbnb said it expects second-quarter revenue to be between $2.35 billion and $2.45 billion versus estimates of $2.42 billion. Second-quarter nights and experiences growth is expected to be lower than anticipated revenue growth. 

"We have some big ideas for where to take Airbnb next. This year, we’re building the foundation for new products and services that we plan to launch in 2024 and beyond," the company said. 

Airbnb also authorized a new share repurchase authorization of up to $2.5 billion.

Check This Out: Airbnb Q1 Earnings Highlights: Revenue And EPS Beat, Strong Growth In Nights Booked, Q2 Guidance Disappoints

Analyst Assessment:

• Piper Sandler analyst Thomas Champion maintained Airbnb with a Neutral and lowered the price target from $131 to $117.
• Barclays analyst Mario Lu maintained Airbnb with an Equal-Weight and lowered the price target from $128 to $112.
• Morgan Stanley analyst Brian Nowak maintained Airbnb with an Underweight and lowered the price target from $100 to $95.
• DA Davidson analyst Tom White maintained Airbnb with a Buy and lowered the price target from $145 to $140.
• Credit Suisse analyst Stephen Ju maintained Airbnb with a Neutral and lowered the price target from $160 to $150.

ABNB Price Action: Airbnb shares were down 14.4% at $108.80 at time of publication, according to Benzinga Pro.

Photo: Mariya from Pixabay.