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.
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.
