Airbnb, Inc. (ABNB) Dives More Than Wider Markets: What You Need to Know

Airbnb, Inc. (ABNB) closed the most recent trading day at $173.63, up -1.08% from the previous trading session. This change lagged the S&P 500’s daily loss of 0.63%. Elsewhere, the Dow lost 0.19%, while the tech-heavy Nasdaq lost 0.34%.

Prior to today’s trading, the company’s stock was up 16.23% in the past month. This was faster than the computer and technology sector’s gain of 5.65% and the S&P 500’s gain of 6.02% at the time.

Investors hope for strength from Airbnb, Inc. as it approaches the next earnings release. In that report, analysts expect Airbnb, Inc. posted earnings of -$0.24 per share. This would represent a year-over-year growth of 86.29%. Meanwhile, our latest consensus estimate calls for revenue of $1.46 billion, up 64.5% from the year-ago quarter.

ABNB’s Zacks Consensus Estimates for the full year assume earnings of $1.50 per share and revenue of $8.02 billion. These results represent year-over-year changes of +363.16% and +33.88%, respectively.

Investors should also note recent changes in analyst estimates for Airbnb, Inc. These revisions help to demonstrate the ever-changing nature of short-term business trends. With this in mind, we can view positive estimate revisions as a sign of optimism about the company’s business prospects.

Research indicates that these revisions to estimates are directly related to the stock’s short-term price momentum. We developed the Zacks Rank to respond to this phenomenon. Our system takes these estimate changes into account and provides a clear, usable assessment model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable externally audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate is up 5.3% over the past month. Airbnb, Inc. currently has a Zacks rank of #3 (Hold).

Airbnb, Inc. plunges into valuation and currently has a Forward P/E ratio of 117.01. This valuation marks a premium to the industry’s average Forward P/E of 26.52.

The Internet – The content industry is part of the computer and technology sector. This industry currently has a Zacks Industry Rank of 108, placing it in the top 43% of all 250+ industries.

The Zacks Industry Rank measures the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the sectors with the highest 50% rating outperform the bottom half by a factor of 2 to 1.

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