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Airbnb Inc. (Nasdaq: ABNB) shares tumbled more than 6% on Wednesday after the vacation rental company issued a weaker-than-expected outlook for the current quarter.

The stock had gained about 9.34% over the past 12 months. For the quarter ending March 2024, Airbnb had reported an EPS of $0.41, beating expectations by approximately 75%.

Airbnb Stock Price Update

Airbnb shares fell over 6% since the market opened at the time of writing, trading at $147. The stock finds a zone of support between $141 and $148 from the 200-day moving average and price action dating back to September last year.

However, failure to hold above this support zone opens the door for Airbnb’s stock price to potentially decline to lower support around $126.

Why Airbnb Stock Dipped Today

Airbnb reported first-quarter revenue of $2.14 billion, up 18% year-over-year, and adjusted earnings per share of $0.41, beating analyst estimates of $2.06 billion in revenue and $0.24 EPS.

Despite the strong results, Airbnb’s second-quarter revenue forecast of $2.68-$2.74 billion, representing 8-10% growth, had its midpoint below the $2.74 billion Wall Street consensus, disappointing investors.

The company cited headwinds to second-quarter results from the timing of Easter, an extra leap-year day in the first quarter, and foreign exchange fluctuations.

Jefferies maintained a Hold rating and $150 price target on Airbnb stock, stating that the results failed to ease growing fears of slowing growth. Morgan Stanley kept an Underweight rating and $120 target as room night growth continues to underwhelm.

Bank of America acknowledged Airbnb’s strong first-quarter performance but noted that the company’s outlook reflects slowing travel growth. As a result, BofA cut its price target on Airbnb stock to $160 from $168.

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