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Airbnb, Inc. (ABNB) Stock Drops Despite Market Gains: Important Facts to Note

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Airbnb, Inc. (ABNB - Free Report) closed the most recent trading day at $129.25, moving -1.12% from the previous trading session. The stock's change was less than the S&P 500's daily gain of 0.4%. Meanwhile, the Dow experienced a rise of 0.62%, and the technology-dominated Nasdaq saw an increase of 0.6%.

Shares of the company witnessed a gain of 11.21% over the previous month, beating the performance of the Computer and Technology sector with its gain of 0.91% and the S&P 500's gain of 1.71%.

The upcoming earnings release of Airbnb, Inc. will be of great interest to investors. In that report, analysts expect Airbnb, Inc. to post earnings of $2.26 per share. This would mark a year-over-year decline of 5.44%. At the same time, our most recent consensus estimate is projecting a revenue of $3.72 billion, reflecting a 9.37% rise from the equivalent quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.39 per share and a revenue of $11.03 billion, indicating changes of -39.36% and +11.18%, respectively, from the former year.

It is also important to note the recent changes to analyst estimates for Airbnb, Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 0.93% fall in the Zacks Consensus EPS estimate. Airbnb, Inc. is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Airbnb, Inc. has a Forward P/E ratio of 29.76 right now. This expresses a premium compared to the average Forward P/E of 16.81 of its industry.

Also, we should mention that ABNB has a PEG ratio of 1.74. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Content was holding an average PEG ratio of 1.22 at yesterday's closing price.

The Internet - Content industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 67, placing it within the top 27% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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