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Airbnb, Inc. (Nasdaq: ABNB) is set to release its third-quarter earnings after the closing bell on Thursday, November 7, 2024. Analysts anticipate earnings of $2.14 per share, a significant decline from the $6.63 per share reported in the same period last year.

Despite the drop in earnings, revenue is projected to rise by 9.4% year-on-year to $3.72 billion, although this marks a slowdown compared to the 17.8% growth seen in the previous year. The company met revenue expectations last quarter with $2.75 billion, representing a 10.6% increase from the previous year, but fell short of booking estimates.

Airbnb Stock Up Almost 5% Over the Past Month

Airbnb’s stock has shown resilience amid market fluctuations, closing at $140.91, up 2.2% on the day before the earnings report. The stock has gained 4.9% over the past month, reflecting positive sentiment in the consumer internet segment, which has seen an average increase of 8.6%.

Analysts have issued mixed ratings on Airbnb, with UBS and B of A Securities maintaining neutral ratings but raising their price targets to $144 and $142, respectively. Meanwhile, Wells Fargo and Cantor Fitzgerald have assigned underweight ratings, with price targets of $102 and $94. Mizuho remains optimistic with an outperform rating, although it has slightly reduced its price target to $170.

Airbnb’s stock price currently stands at $145.33, marking a $4.35 increase, or 3.09% gain. Over the past year, the stock has returned 22.98%, although it has experienced a 27.92% decline over three years.

The company’s market capitalization is $91.91 billion, supported by strong financial metrics, including a profit margin of 46.11% and a return on equity of 74.18%. Airbnb’s total revenue over the trailing twelve months is $10.5 billion, with a net income of $4.84 billion, highlighting its profitability in the travel services industry.

What Retail ABNB Investors Should Look Out For

Retail investors should closely monitor Airbnb’s performance against the expected earnings of $2.14 per share and revenue of $3.72 billion. Updates on booking numbers are crucial, especially after missing estimates last quarter.

Additionally, guidance for the upcoming quarter will be pivotal in shaping investor sentiment and stock performance. Changes in analyst ratings and price targets following the earnings report could further influence market perception. Investors should also consider Airbnb’s performance relative to competitors like Booking Holdings (NASDAQ: BKNG) and Expedia Group (NASDAQ: EXPE), as well as broader market trends within the consumer internet segment.

As Airbnb prepares to announce its earnings, it marks 26 years since its inception on August 11, 2008. The company remains a significant player in the travel services sector, with institutional ownership at 56%. Analysts have given a strong buy recommendation, with price targets ranging from $80.00 to $195.00.

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