Airbnb Stock Up 14% as Earnings Push Targets Higher

Airbnb's stock (NASDAQ: ABNB) is soaring in the extended hours session, up 14% in the premarket on the back of some impressive earnings. With an EPS of $0.73 ($0.58 expected) and revenues of $2.48 billion ($2.42B expected), the company beat on both top and bottom lines, and has been met with approval from analysts.

UBS has revised its Airbnb price target from $143 to $160, while maintaining a Neutral rating on the shares. This adjustment factors in projections for near-term margin compression, followed by an anticipated expansion into Q4 2025 and 2026 as Airbnb experiences growth in its gross bookings and incremental units.

Additionally, the company is expected to commit between $200M and $250M to Marketing and Product Development initiatives, laying the groundwork for what's expected to be the resurgence of Airbnb Experiences by mid-2025. Against this backdrop, Airbnb's stock has exhibited a mild uptick of 0.37% in the latest trading session, indicating a positive investor response to the new price target.

The company's shares are currently trading at $160.82 in the pre-market, towards the upper end of it's 52 week range ($110.38 – $170.1).

The investment in marketing and product development, particularly aimed at revitalizing its Experiences offering, suggests a long-term strategy that is anticipated to grow the volume more swiftly than market expectations. Furthermore, Airbnb's efforts to broaden localization beyond its core markets underscore its strategic move to bolster its baseline lodging marketplace with adjacent services.

San Francisco-based Airbnb operates within the Consumer Cyclical sector, specifically under the Travel Services industry. The platform connects hosts with guests, facilitating bookings for private rooms, primary homes, and vacation homes across the globe.

Its business model has attracted significant institutional interest, with approximately 80.76% of Airbnb's stock held by institutional investors. The company has demonstrated sound financial health with total revenue reaching $10.84 billion and net income available to common stockholders reported at $1.84 billion.

With analysts sitting below the current price action on consensus price target of $147.94, time will tell if markets support the extent of the upside movement today.