Back to top

Image: Bigstock

Airbnb, Inc. (ABNB) Dips More Than Broader Market: What You Should Know

Read MoreHide Full Article

Airbnb, Inc. (ABNB - Free Report) closed at $114.09 in the latest trading session, marking a -1.2% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.48%. Elsewhere, the Dow saw a downswing of 1.12%, while the tech-heavy Nasdaq appreciated by 0.38%.

The company's shares have seen a decrease of 15.39% over the last month, not keeping up with the Computer and Technology sector's loss of 3.16% and the S&P 500's loss of 2.65%.

Market participants will be closely following the financial results of Airbnb, Inc. in its upcoming release. The company plans to announce its earnings on November 1, 2023. The company is expected to report EPS of $2.08, up 16.2% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $3.37 billion, showing a 16.75% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates project earnings of $3.80 per share and a revenue of $9.85 billion, demonstrating changes of +36.2% and +17.27%, respectively, from the preceding year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Airbnb, Inc. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.18% upward. Airbnb, Inc. presently features a Zacks Rank of #3 (Hold).

In terms of valuation, Airbnb, Inc. is presently being traded at a Forward P/E ratio of 30.41. This indicates a premium in contrast to its industry's Forward P/E of 20.61.

One should further note that ABNB currently holds a PEG ratio of 1.49. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Internet - Content stocks are, on average, holding a PEG ratio of 1.25 based on yesterday's closing prices.

The Internet - Content industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 69, positioning it in the top 28% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow ABNB in the coming trading sessions, be sure to utilize Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Airbnb, Inc. (ABNB) - free report >>

Published in