Airbnb’s Margins Under Pressure Despite Q3 Beat, Analysts Caution
Shares of Airbnb Inc (NASDAQ:ABNB) tumbled in early trading on Friday, after the company reported downbeat third-quarter results.
The company reported its results amid an exciting earnings season. Here are some key analyst takeaways.
Piper Sandler On Airbnb
Analyst Thomas Champion maintained a Neutral, while raising the price target from $125 to $145.
Airbnb reported third-quarter gross bookings and revenues of $20.1 billion and $3.7 billion, up 10% year-on-year and 9% year-on-year, respective, with both coming in higher than estimates, Champion said in a note. The company’s results were “solid” and reflected “firming demand trends,” he added.
Airbnb repurchased shares worth around $1.1 billion, higher than its average of $500 million in the first and second quarters, with remaining authorization of $4.2 billion, the analyst stated. Management indicated expenses in marketing and investment in new businesses “to reignite growth,” he further wrote.
JPMorgan On Airbnb
Analyst Doug Anmuth reiterated a Neutral rating, while lifting the price target from $121 to $142.
Despite the challenges faced in the second quarter, “broad-based strength in demand trends & a normalization of booking lead times” generated growth in GBV (gross booking value) through the third quarter and into the fourth, Anmuth said.
The company’s fourth-quarter guidance of N&E (Nights & Experiences) acceleration “reflects continued healthy travel demand trends, a normalized booking window relative to last quarter, and success across core optimizations and market expansion, despite tougher comps,” the analyst wrote. With investments in marketing and product development expected to continue through 2025, Airbnb’s margins could remain under pressure in the near term, he added.
Goldman Sachs On Airbnb
Analyst Eric Sheridan reiterated a Sell, raising the price target from $103 to $107.
Airbnb indicated demand strength into the fourth quarter across its core and expansion markets, which build on “demand accelerating every month since July,” Sheridan said. The company’s revenue guidance for the fourth quarter reflects “an acceleration in room …
Full story available on Benzinga.com