Sometimes an earnings report isn’t as cut-and-dried as we might like. Sometimes good results prompt a share price drop because of weak guidance or some strange macroeconomic conditions that haven’t really appeared yet. That’s what’s happening with Airbnb (NASDAQ:ABNB), who offered up a solid earnings report but couldn’t quite stick the dismount as volatility kicked in over the future guidance.
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Airbnb’s earnings report proved solid enough, with both beats on earnings and revenue figures. Here’s the problem, though; Airbnb expects second-quarter revenue between $2.35 billion and $2.45 billion. Analysts look for $2.42 billion. That’s in the range, but it doesn’t leave a lot of room for Airbnb to coax out a win.
Bernstein analysts have been parsing the numbers and fielding a lot of questions from clients on Airbnb. Specifically, Bernstein clients note issues between Airbnb’s performance and the overall solid performances turned in by more traditional hotel stocks like Marriott (NASDAQ:MAR) and Hilton (NYSE:HLT). While issues of performance due to macroeconomic conditions might have explained a general decline, Airbnb’s decline seems a lot more specific, and that’s been prompting questions all over.
Analysts, meanwhile, are deeply split on Airbnb stock. Analyst consensus calls Airbnb stock a Moderate Buy, with 16 Buy ratings, 15 Holds, and two Sells. Plus, Airbnb stock also offers investors 23.63% upside potential thanks to its average price target of $134.32.
