Airbnb Stock (NASDAQ:ABNB)
After Airbnb (NASDAQ:ABNB) spooked investors with less-than-expected guidance, the stock turned downward on Wednesday. Due to negative year-over-year comparisons that reflected the post-pandemic spike in travel demand, the online travel giant cautioned that comparisons for the current quarter would be difficult.
Financial experts on Wall Street had a range of reactions to the report. Evercore ISI’s Mark Mahaney described the forecast for Airbnb (ABNB) and the subsequent response of the share price as a “bit of a course correction.” He pointed out that the underlying trends have decreased slightly, with year-over-year revenue growth of 24% reflecting a 7-point slowdown compared to the previous quarter. An EBITDA margin of 14% is a 100 basis point year-over-year reduction. After the price drop, Evercore took away its near-term recommendation of Tactical Underperform.
In his review of Airbnb, the analyst at Mizuho Securities named, James Lee, said that ADR growth is continuing to be sticky. However, there are hints of price sensitivity appearing. Even after the price drop, the company maintained its neutral rating on Airbnb stock since it believes it has a premium value compared to other travel companies. The advice given to investors is to wait for a better entry opportunity or additional catalysts, such as advertising, that might boost the take rate and profitability upward.
The analyst at Morgan Stanley named Brian Nowak said that lower-than-expected future room night growth speaks to how ahead growth, which is increasingly dependent on Europe, APAC, LATAM, and new business prospects, might face greater levels of execution risk. The possibility of ABNB losing market share to Booking Holdings is considered a competitive risk. The company now has a rating of Underweight and has reduced its price objective to $95.
Michael Wiggins De Oliveira, the leader of the Investing Group at Seeking Alpha, maintained his optimistic stance on Airbnb (ABNB), pointing out that the firm is a free cash flow monster.
Wednesday’s early trading session saw a 12.06% decline in Airbnb stock, although the stock is still up more than 30% year-to-date. Expedia decreased by 1.25%, while Booking Holdings (BKNG) saw a decrease of 0.29%.
Featured Image: Unsplash @ Taylor Heery
Author Shariq Khan 
