Airbnb (NASDAQ:ABNB) is scheduled to announce its first-quarter earnings after the market closes on May 9, Tuesday. The company is likely to have capitalized on the strong travel demand. After seven consecutive quarters of earnings beats, ABNB could beat earnings again, according to several analyst forecasts and technical indicators.
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The company connects hosts and guests online and allows them to book travel services and accommodation facilities worldwide.
Airbnb guides Q1 revenue in the range of $1.75 billion and $1.82 billion, driven by growth in European travel and a gradual recovery in China. Moreover, at the Q4 earnings call, the company said it entered 2023 with a strong backlog. Also, it expects the growth in Nights and Experiences Booked (representing net nights booked for stays and net seats booked for experiences) to remain as strong as 4Q22 growth of 20% year-on-year growth.
Meanwhile, the Street expects Airbnb to post earnings of $0.21 in Q1, compared with the prior-year quarter figure of a loss of $0.03. Further, analysts project net revenue of $1.79 billion, up 18.5% from the same quarter last year.
DBS Analyst Remains Bullish
Ahead of the Q1 earnings release, DBS analyst Sachin Mittal maintained a Buy rating on ABNB stock with a price target of $153. The analyst is of the opinion that Airbnb’s cost control measures might have supported EBITDA margins during the quarter.
Additionally, according to Mittal, Airbnb may prove resilient in the event of a recession. This is because the company’s business model enables it to provide accommodation at cheaper prices when compared to hotels.
Is Airbnb Stock a Buy or a Sell?
Wall Street is cautiously optimistic about Airbnb, with a Moderate Buy consensus rating based on 16 Buys, 15 Holds, and two Sells. The average ABNB stock price target of $142.03 suggests 18.5% upside potential.
ABNB Stock’s Technical Analysis Reflects a Bullish Trend
Ahead of the Q1 earnings release, Airbnb stock’s technical indicators are flashing a bullish signal. ABNB is a Strong Buy based on TipRanks’ easy-to-understand summary signals.
According to TipRanks’ technical analysis tool, the stock’s 50-Day EMA (exponential moving average) is 116.91, while its price is $119.9, making it a Strong Buy. Further, ABNB’s shorter duration EMA (20-day) also signals an uptrend.
Ending Thoughts
Given the travel recovery boom, Airbnb continues to make efforts to grow the number of users and hosts on its platform by rolling out new features. Based on customer feedback, the company upgraded and added 50 new features to its platform last week. The move is likely to help instill confidence among its users.
