Airbnb (NASDAQ:ABNB) Earns "Outperform" Rating from Royal Bank Of Canada

Key Points

• Royal Bank of Canada reiterated its Outperform rating on Airbnb and kept a $173 price target, implying about 32% upside from the previous close.
• Other analysts remain generally positive on the stock, with Airbnb carrying a Moderate Buy consensus and a $157.67 average target price. Recent calls included upgraded or reaffirmed ratings from firms like Benchmark, Citigroup, UBS, and Needham.
• Airbnb’s latest earnings showed revenue beat expectations at $2.68 billion, but EPS missed estimates at $0.26 versus $0.31 expected. The article also notes recent insider share sales and a broader push into hotels, car rentals, delivery, and AI-powered travel tools.

Airbnb (NASDAQ:ABNB - Get Free Report)'s stock had its "outperform" rating reiterated by equities researchers at Royal Bank Of Canada in a research report issued on Thursday,Benzinga reports. They presently have a $173.00 price objective on the stock. Royal Bank Of Canada's target price would indicate a potential upside of 32.20% from the stock's previous close.

Several other equities analysts have also recently commented on the stock. Benchmark boosted their target price on shares of Airbnb from $145.00 to $160.00 and gave the company a "buy" rating in a research report on Friday, May 8th. Citigroup restated an "outperform" rating on shares of Airbnb in a research report on Friday, May 8th. UBS Group boosted their target price on shares of Airbnb from $153.00 to $157.00 and gave the company a "neutral" rating in a research report on Friday, May 8th. Wedbush upgraded shares of Airbnb from a "neutral" rating to a "neutral" rating in a research report on Monday, May 4th. Finally, Needham & Company LLC started coverage on shares of Airbnb in a research report on Monday, May 4th. They issued a "buy" rating for the company. Two investment analysts have rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating, thirteen have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, Airbnb currently has a consensus rating of "Moderate Buy" and a consensus target price of $157.67.

Airbnb Stock Performance

Airbnb stock traded down $4.69 during midday trading on Thursday, hitting $130.86. The company's stock had a trading volume of 810,781 shares, compared to its average volume of 4,248,923. The company has a 50-day moving average price of $133.52 and a two-hundred day moving average price of $129.76. The company has a market cap of $78.87 billion, a price-to-earnings ratio of 32.27, a PEG ratio of 1.41 and a beta of 1.20. The company has a debt-to-equity ratio of 0.32, a current ratio of 1.44 and a quick ratio of 1.44. Airbnb has a 1-year low of $110.81 and a 1-year high of $147.25.

Airbnb (NASDAQ:ABNB - Get Free Report) last issued its earnings results on Thursday, May 7th. The company reported $0.26 EPS for the quarter, missing the consensus estimate of $0.31 by ($0.05). The firm had revenue of $2.68 billion during the quarter, compared to analyst estimates of $2.62 billion. Airbnb had a net margin of 19.90% and a return on equity of 31.24%. Airbnb's quarterly revenue was up 17.9% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.24 earnings per share. As a group, sell-side analysts predict that Airbnb will post 4.91 earnings per share for the current year.

Insider Activity at Airbnb

In related news, CFO Elinor Mertz sold 3,750 shares of Airbnb stock in a transaction that occurred on Monday, May 4th. The shares were sold at an average price of $143.00, for a total transaction of $536,250.00. Following the sale, the chief financial officer directly owned 463,415 shares of the company's stock, valued at approximately $66,268,345. The trade was a 0.80% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Nathan Blecharczyk sold 627 shares of Airbnb stock in a transaction that occurred on Monday, May 11th. The shares were sold at an average price of $145.67, for a total transaction of $91,335.09. Following the sale, the insider directly owned 11,920 shares in the company, valued at $1,736,386.40. This trade represents a 5.00% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 513,838 shares of company stock valued at $69,467,685. 27.21% of the stock is owned by insiders.

Institutional Investors Weigh In On Airbnb

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Commerzbank Aktiengesellschaft FI grew its holdings in shares of Airbnb by 1.3% during the 1st quarter. Commerzbank Aktiengesellschaft FI now owns 5,754 shares of the company's stock valued at $727,000 after purchasing an additional 76 shares during the last quarter. Patton Fund Management Inc. grew its holdings in shares of Airbnb by 4.3% during the 4th quarter. Patton Fund Management Inc. now owns 1,874 shares of the company's stock valued at $254,000 after purchasing an additional 77 shares during the last quarter. BOKF NA grew its holdings in Airbnb by 11.0% during the 4th quarter. BOKF NA now owns 787 shares of the company's stock worth $107,000 after acquiring an additional 78 shares during the last quarter. Yoder Wealth Management Inc. grew its holdings in Airbnb by 0.3% during the 4th quarter. Yoder Wealth Management Inc. now owns 26,389 shares of the company's stock worth $3,582,000 after acquiring an additional 84 shares during the last quarter. Finally, Private Advisor Group LLC grew its holdings in Airbnb by 1.0% during the 3rd quarter. Private Advisor Group LLC now owns 8,295 shares of the company's stock worth $1,007,000 after acquiring an additional 86 shares during the last quarter. 80.76% of the stock is owned by institutional investors.

Key Headlines Impacting Airbnb

Here are the key news stories impacting Airbnb this week:

• Positive Sentiment: Airbnb unveiled a broad app expansion that adds boutique hotels, car rentals, airport/train pickups, luggage storage, grocery delivery through Instacart, and AI-powered travel tools. The move could open new revenue streams and make the platform stickier for travelers. Airbnb adds hotels, car rentals. Chesky says app can become an 'Amazon for services'
• Positive Sentiment: CEO Brian Chesky is pitching Airbnb as an “ecosystem of services” for travel and living, which supports a longer-term growth narrative and suggests the company is trying to diversify beyond short-term rentals. Airbnb Expands Into Car Rentals, Food, Hotels
• Neutral Sentiment: Airbnb is also getting a lot of attention from media and analyst commentary around the expansion, which may keep sentiment elevated but does not by itself change fundamentals. Airbnb gets into hotels, expands AI for host onboarding and customer support
• Negative Sentiment: The expansion also underscores pressure on Airbnb’s core business from tighter local regulation on short-term rentals, raising questions about how much growth can still come from its original model. Airbnb expands into hotels, cars, groceries
• Negative Sentiment: Director Joseph Gebbia sold 54,000 shares worth about $7.28 million, a move that can weigh on investor sentiment even if it reflects personal portfolio management rather than a change in business outlook. SEC filing for Joseph Gebbia transaction

Airbnb Company Profile

Airbnb, Inc NASDAQ: ABNB operates a global online marketplace that connects travelers with hosts offering short-term lodging, unique accommodations and related travel experiences. The company's core platform enables individuals and professional property managers to list private homes, apartments, single rooms and entire properties, while providing search, booking and payment processing for guests. Airbnb earns revenue primarily through service fees charged to guests and hosts and offers tools to facilitate reservations, communications, and logistics between parties.

Beyond accommodations, Airbnb has expanded its product portfolio to include curated experiences led by local hosts, higher-end offerings such as Airbnb Luxe, and programs aimed at enhancing quality and safety like Airbnb Plus.

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