William Blair Has Bearish Outlook for Airbnb FY2025 Earnings

Key Points

• William Blair has revised its FY2025 earnings estimate for Airbnb to $4.22 per share, slightly down from a previous estimate of $4.26, while the current consensus stands at $4.31 per share.
• Despite a positive quarterly earnings result of $1.03 per share, exceeding estimates, analysts show a mixed sentiment with reports of lowered target prices and various ratings from banks like JPMorgan and Truist.
• Airbnb's market capitalization is approximately $75.93 billion, with institutional investors holding around 80.76% of the stock, indicating strong backing despite recent analyst caution.

Airbnb, Inc. (NASDAQ:ABNB - Free Report) - Research analysts at William Blair dropped their FY2025 earnings per share estimates for Airbnb in a research report issued on Thursday, August 7th. William Blair analyst R. Schackart now anticipates that the company will post earnings of $4.22 per share for the year, down from their previous estimate of $4.26. The consensus estimate for Airbnb's current full-year earnings is $4.31 per share. William Blair also issued estimates for Airbnb's Q4 2025 earnings at $0.65 EPS, Q1 2026 earnings at $0.27 EPS, Q2 2026 earnings at $1.00 EPS, Q3 2026 earnings at $2.55 EPS, Q4 2026 earnings at $0.88 EPS and FY2026 earnings at $4.69 EPS.

Airbnb (NASDAQ:ABNB - Get Free Report) last posted its earnings results on Wednesday, August 6th. The company reported $1.03 EPS for the quarter, topping the consensus estimate of $0.92 by $0.11. Airbnb had a net margin of 22.67% and a return on equity of 32.19%. The business had revenue of $3.10 billion for the quarter, compared to the consensus estimate of $3.02 billion. During the same period last year, the company earned $0.86 EPS. The firm's revenue was up 12.7% compared to the same quarter last year.

A number of other research firms also recently weighed in on ABNB. BMO Capital Markets set a $124.00 price objective on Airbnb and gave the company a "market perform" rating in a report on Thursday. Morgan Stanley reduced their price target on Airbnb from $130.00 to $120.00 and set an "underweight" rating on the stock in a research report on Thursday. JPMorgan Chase & Co. raised their price objective on Airbnb from $120.00 to $130.00 and gave the stock a "neutral" rating in a research report on Thursday. Royal Bank Of Canada lifted their price objective on Airbnb from $140.00 to $145.00 and gave the stock a "sector perform" rating in a research note on Thursday. Finally, Barclays set a $105.00 target price on shares of Airbnb and gave the company an "underweight" rating in a research report on Thursday. Five investment analysts have rated the stock with a sell rating, sixteen have given a hold rating, thirteen have given a buy rating and two have issued a strong buy rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of $143.59.

Airbnb Stock Up 0.8%

Shares of ABNB stock traded up $0.99 during trading hours on Friday, hitting $121.02. 5,785,507 shares of the company's stock traded hands, compared to its average volume of 4,795,555. The stock has a market cap of $75.81 billion, a PE ratio of 29.30, a price-to-earnings-growth ratio of 2.24 and a beta of 1.13. The stock's 50 day simple moving average is $134.96 and its 200 day simple moving average is $130.97. Airbnb has a 12 month low of $99.88 and a 12 month high of $163.93.

Institutional Investors Weigh In On Airbnb

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Kentucky Trust Co purchased a new stake in shares of Airbnb in the second quarter valued at about $25,000. Park Square Financial Group LLC bought a new stake in Airbnb in the 4th quarter worth about $26,000. E Fund Management Hong Kong Co. Ltd. grew its position in Airbnb by 70.9% in the 2nd quarter. E Fund Management Hong Kong Co. Ltd. now owns 200 shares of the company's stock worth $26,000 after purchasing an additional 83 shares in the last quarter. Orion Capital Management LLC purchased a new stake in Airbnb in the 4th quarter valued at about $28,000. Finally, Concord Wealth Partners bought a new position in shares of Airbnb during the 2nd quarter worth approximately $28,000. 80.76% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling at Airbnb

In related news, CAO David C. Bernstein sold 5,000 shares of the firm's stock in a transaction dated Thursday, July 24th. The shares were sold at an average price of $142.00, for a total value of $710,000.00. Following the transaction, the chief accounting officer owned 42,619 shares of the company's stock, valued at approximately $6,051,898. This trade represents a 10.50% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CTO Aristotle N. Balogh sold 600 shares of the business's stock in a transaction that occurred on Thursday, July 24th. The stock was sold at an average price of $139.39, for a total value of $83,634.00. Following the sale, the chief technology officer directly owned 209,777 shares of the company's stock, valued at $29,240,816.03. This represents a 0.29% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 1,671,023 shares of company stock valued at $223,195,427. Insiders own 27.91% of the company's stock.

Airbnb Company Profile

Airbnb, Inc, together with its subsidiaries, operates a platform that enables hosts to offer stays and experiences to guests worldwide. The company's marketplace connects hosts and guests online or through mobile devices to book spaces and experiences. It primarily offers private rooms, primary homes, and vacation homes.