Morgan Stanley Increases Airbnb (NASDAQ:ABNB) Price Target to $125.00

Key Points

• Morgan Stanley raised Airbnb’s price target from $120 to $125 but maintained an “underweight” rating, implying 17.4% downside from the prior close.
• Airbnb’s shares fell 1.1% to $151.32, while the broader analyst consensus remained more favorable at “Moderate Buy,” with an average price target of $160.42.
• The company reported revenue growth of 17.9% year over year but missed quarterly earnings estimates, and insiders sold approximately $349 million of stock over the past three months.

Airbnb (NASDAQ:ABNB - Get Free Report) had its price target increased by stock analysts at Morgan Stanley from $120.00 to $125.00 in a research report issued to clients and investors on Thursday,Benzinga reports. The brokerage currently has an "underweight" rating on the stock. Morgan Stanley's target price indicates a potential downside of 17.40% from the company's previous close.

A number of other brokerages also recently commented on ABNB. Raymond James Financial upgraded Airbnb from a "market perform" rating to a "strong-buy" rating in a research report on Monday, May 4th. Rodman & Renshaw began coverage on Airbnb in a research note on Monday, May 4th. They set a "buy" rating for the company. HSBC downgraded Airbnb from a "hold" rating to a "hold" rating in a research report on Monday, May 4th. Royal Bank Of Canada restated an "outperform" rating and set a $173.00 price target on shares of Airbnb in a research report on Thursday, May 21st. Finally, Sanford C. Bernstein reiterated an "outperform" rating on shares of Airbnb in a research note on Friday, May 22nd. Two analysts have rated the stock with a Strong Buy rating, twenty-three have assigned a Buy rating, thirteen have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $160.42.

Airbnb Stock Down 1.1%

Shares of NASDAQ:ABNB traded down $1.69 during trading on Thursday, hitting $151.32. The company's stock had a trading volume of 941,316 shares, compared to its average volume of 4,075,639. The business has a 50 day moving average price of $140.88 and a two-hundred day moving average price of $134.89. The company has a market capitalization of $91.21 billion, a PE ratio of 37.28, a P/E/G ratio of 1.64 and a beta of 1.14. Airbnb has a fifty-two week low of $110.81 and a fifty-two week high of $156.50. The company has a debt-to-equity ratio of 0.32, a quick ratio of 1.44 and a current ratio of 1.44.

Airbnb (NASDAQ:ABNB - Get Free Report) last released its quarterly earnings results on Thursday, May 7th. The company reported $0.26 earnings per share for the quarter, missing analysts' consensus estimates 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 return on equity of 31.24% and a net margin of 19.90%.The business's revenue was up 17.9% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.24 EPS. As a group, research analysts expect that Airbnb will post 4.93 EPS for the current fiscal year.

Insider Activity

In other news, CEO Brian Chesky sold 265,746 shares of the firm's stock in a transaction dated Thursday, May 28th. The shares were sold at an average price of $132.22, for a total transaction of $35,136,936.12. Following the completion of the transaction, the chief executive officer directly owned 11,206,389 shares of the company's stock, valued at approximately $1,481,708,753.58. This trade represents a 2.32% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Nathan Blecharczyk sold 88,366 shares of the firm's stock in a transaction that occurred on Wednesday, June 24th. The shares were sold at an average price of $145.81, for a total transaction of $12,884,646.46. Following the completion of the transaction, the insider directly owned 12,370 shares in the company, valued at approximately $1,803,669.70. The trade was a 87.72% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 2,510,479 shares of company stock worth $349,064,808. 27.21% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in ABNB. Regent Peak Wealth Advisors LLC purchased a new position in shares of Airbnb during the 2nd quarter valued at $284,000. Family Wealth Partners LLC raised its holdings in Airbnb by 5.9% in the 2nd quarter. Family Wealth Partners LLC now owns 2,324 shares of the company's stock valued at $333,000 after acquiring an additional 130 shares during the last quarter. Tema ETFs LLC raised its position in shares of Airbnb by 8.9% during the 2nd quarter. Tema ETFs LLC now owns 7,062 shares of the company's stock valued at $1,011,000 after buying an additional 580 shares during the period. Chemistry Wealth Management LLC raised its holdings in shares of Airbnb by 3.8% in the 2nd quarter. Chemistry Wealth Management LLC now owns 29,453 shares of the company's stock valued at $4,215,000 after buying an additional 1,065 shares during the period. Finally, Hennion & Walsh Asset Management Inc. lifted its stake in Airbnb by 16.8% in the second quarter. Hennion & Walsh Asset Management Inc. now owns 6,076 shares of the company's stock worth $869,000 after acquiring an additional 875 shares during the last quarter. Institutional investors own 80.76% of the company's stock.

Key Airbnb News

Here are the key news stories impacting Airbnb this week:

• Positive Sentiment: Analysts and Zacks expect Airbnb’s upcoming quarterly results to show earnings growth and identify two factors that could support a potential earnings beat. Investors are focused on whether the company can convert strong travel demand into higher revenue and profitability. Airbnb Earnings Expected to Grow
• Positive Sentiment: Airbnb’s global marketplace, expanding travel offerings and potential for another growth cycle are supporting bullish sentiment. The stock remains above its 50-day and 200-day moving averages, while the analyst consensus is “Moderate Buy” with an average price target of $160.23—above its recent trading level. Airbnb Momentum Opens a Bigger Debate
• Neutral Sentiment: Airbnb is receiving elevated investor attention, including significant options-market activity and frequent appearances among trending stocks. This may increase volatility and trading interest but does not provide a clear fundamental signal. Airbnb Trending Stock
• Negative Sentiment: Director Joseph Gebbia sold 265,000 shares for approximately $38.6 million, reducing his direct ownership by 12.66%. Co-founder Nathan Blecharczyk also sold 13,615 shares and has reported additional sales. Although such transactions may be planned or personal, the repeated insider selling can weigh on investor confidence. Joseph Gebbia Insider Sale
• Negative Sentiment: Airbnb trades at a higher valuation than Booking Holdings, with a price-to-earnings ratio near 37. Investors remain concerned that regulatory restrictions on short-term rentals could pressure growth and make the premium multiple harder to sustain. Airbnb Versus Booking

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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